RP Sugar Exports

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RP to complete sugar shipment to US in April.

The Philippines is set to conclude next month the shipment of 137,353 metric tons (MT) of sugar to the United States under the tariff-rate quota (TRQ) scheme.

The Sugar Regulatory Administration (SRA) said that 7,795.3 MT of sugar would be shipped out to the US in April, and that would complete its quota under the scheme. This month, the Philippines will ship out 20,037.66 MT.

SRA figures show that local traders started shipping out raw sugar to the US on September 27, 2008. In the three months to December 2008, the Philippines shipped some 75,000 MT of sugar or more than half of its allocation under the TRQ to the US.

The country stepped up its sugar shipments to the US under the SRA’s early export program. The program is a strategy traders employ in coordination with the Philippine government to ensure the stability of domestic prices after the industry produced almost 10 percent more raw sugar for the crop year ending August 31, 2008.

Archimedes Amarra, executive director of the Philippine Sugar Millers Association (PSMA), earlier said that the Philippines usually starts shipping sugar to the US between February and March.

Washington has allowed Philippine traders to export 137,353 MT of sugar under the TRQ scheme for fiscal year (FY) 2009. The Philippines accounts for 13 percent of the total volume the US has allocated for raw sugar imports for FY 2009.

For the current crop year ending August 31, the Philippines is expected to produce 2.05 million metric tons (MMT) of sugar. Of the volume, 10 percent would be exported to foreign buyers.

Earlier, SRA administrator Rafael Coscolluela assured the local industry that despite the bleak prospects of more sugar exports to the US, the industry would not be saddled with a huge surplus of sugar.

Coscolluela said the Philippines would bat for accelerated shipments to the US should the US Congress decide not to grant Manila additional import volume.

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