US trade restrictions limit Philippine sugar exports
MANILA, Philippines - Due to low demand in the United States, the Philippines does not see any early sugar exports in December.
The Sugar Regulatory Administration (SRA) said the country will not export sugar ahead of schedule because the local farmers at its export destination had abundant harvest in October, as well as the existing zero export restrictions in South American countries like Mexico.
The Philippines, at this time, would have to compete with South American countries who enjoy unrestricted access to the US sugar market.
"The demand in the US is not that high because they had a good harvest so traders were not able to close agreements [for early export to the US]. But we will definitely fulfill our US quota," SRA Administrator Ma. Regina Martin said.
The Philippines currently has a regular US quota of 138,827 MT. The regular shipment to the US will commence in in January with a shipment volume of 25,000 MT.
The country currently has 40,952.80 metric tons of “A” or U.S. Quota sugar and 55,853.24 metric tons (MT) of “D” or World Market sugar on stock and ready for export.
Earlier, the SRA explored the possibility of shipping sugar to the US early in the hope of preventing a glut in domestic supply.
The SRA said currently, the domestic sugar supply is abundant. This means that local sugar prices are expected to remain stable this holiday season at an average of P45 per kilo for brown sugar and P50 per kilo for brown sugar. - Rappler.com