SRA clarifies confusion over sugar allocation

MANILA, Philippines - The Sugar Regulatory Authority (SRA) is dispelling rumors that because of the deadline set on the verification of sugar, the unverified “A” sugar will be “homeless” or can no longer be exported to the United States under the quota.

“It is totally inaccurate to say that the remaining unverified “A” is or will be homeless,” the SRA said.

The SRA recently issued Sugar Order No. 7, Series of 2011-2012, prescribing the deadline for verification of “A” sugar or US quota sugar on Jan. 31, 2012.

Verification is the process whereby SRA determines the volume, source and exporter of the sugar. Through verification SRA earmarks the sugar covered by the verified “A” quedan for export to the United States market.

According to SRA, the deadline was set because the Philippine raw sugar quota to the United States is already fully subscribed and no definitive indication was extended by the US government that it will grant an additional allocation to the country.

“We provided the deadline for verification so that the remaining unverified “A” sugar can be utilized for other purposes such as for replenishment “B” sugar intended for the domestic market, after compliance with appropriate SRA orders on the matter,” the SRA said.

Only SRA can declare whether a particular classification of sugar is “homeless” and there is nothing in Sugar Order No. 7 which states that the resulting unverified “A” due to the deadline is homeless sugar. The unverified “A” can still be exported to the US when an additional quota is allocated to the Philippines.

Quedan holders of unverified sugar will have to submit the sugar to SRA for verification when a new sugar order is issued after an additional allocation is extended to the country. Everybody in the sugar industry, meaning all holders of “A” quedans such as farmers, mills and traders, can participate in the additional quota allocation, if given by the US.

Contrary to the opinion of a very few, the Philippine raw sugar quota can be availed by all stakeholders of the sugar industry holding valid “A” quedans.”

The Philippine raw cane sugar quota to the United States is around 138,827 metric tons. As of Jan. 30, 2012, a total of 118,664 metric tons have already been exported, while 158,208 metric tons are verified.

The Philippines is hopeful it will get an additional quota allocation of around 100,000 metric tons. Under the US Farm Bill, the additional quota can be announced only after April 1 of the current year.