SRA may adjust sugar allocations

MANILA, Philippines - A lower than expected sugarcane harvest may prompt the Sugar Regulatory Administration (SRA) to adjust its sugar allocation program for the current crop year.

According to Rosemarie Gumera, SRA policy and planning manager, the sugar agency is contemplating some adjustments in its sugar allocation following reports from farmers and millers that the volume of sugarcane harvests have decreased compared to last year

 “The SRA is now validating the information as a decrease in production will likely trigger a change in sugar allocation,” Gumera said.

“There is less tons of cane harvested per hectare. It was also observed that (the ) canes are shorter and smaller. Despite the higher sugar recovery than last year, it may not compensate for the decrease in tonnage,” she said.

SRA data indicate that the national sugar stock continues to decrease as demand or withdrawal is still higher than production, Gumera said.

Gumera clarified that any adjustments in the allocation would not affect the US sugar quota for 2011-2012 crop year. In fact, Gumera said, the SRA may shift a significant volume of the allocation to the US from the world market allocation.

 “The US sugar quota is a commitment, while world market is an open one... maybe the allocation adjustment is in the world market, but still we are in the process of validating field reports for the sugar board to decide on policy adjustments,” she said.

The US Department of Agriculture (USDA) is allowing the Philippines to export at least 144,901 metric tons (MT) of raw cane sugar, refined and specialty sugar, and sugar-containing products under the country-specific in-quota allocations for fiscal year 2012.