SRA reallocates unshipped US sugar

MANILA, Philippines - The Sugar Regulatory Administration (SRA) plans to swap the unshipped sugar allocation for the Unites States with the world market reallocation to address the slowdown in demand in the US.

SRA chief of staff Butch Alisla said a sugar order mulled for issuance next week would allow traders to ship the remaining volume of A sugar (US sugar) to the world market.

The Philippines has a regular sugar quota to the United States of 138,827 metric tons (MT) for the current crop year. As of July 23, however, only 53,000 MT of sugar had been shipped.

Demand in the US slowed down because of market saturation, resulting to low sugar prices.

Alisla said the SRA wants to open a window for traders to dispose of their remaining stocks.

The SRA is also looking at the reclassification of some of the world market sugar (D sugar) for the production of alternative feedstock for biofuels for the next crop year.

SRA manager for planning and policy Rosamarie Gumera said the reclassification would raise the support price for farmers through diversification of sugarcane products.

The SRA is now surveying  viable areas for ethanol production.

The country consumes 306 million liters of ethanol annually  of which 248 million liters was imported and 32.4 million liters was locally produced.

“We need about 50,000 hectares of additional areas to meet the annual requirement for ethanol,” Gumera said.

The SRA is set to release next month the new sugar allocation for crop year 2013-2013.

Sugar production is now placed at 2.457-million MT, exceeding the 2.434-million MT target for crop year 2012-2013 by one percent.