PHL sugar exports to US of 100,000 MT approved

THE Department of Agriculture (DA) said it approved the Sugar Regulatory Administration’s (SRA) plan to export 100,000 metric tons (MT) of raw sugar to the US, citing the need to reduce excess domestic supply and support farmgate prices.

Domestic sugar production rose by about 130,000 MT in the last crop year, which has resulted in a buildup in inventory.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said allocating part of the harvest for export will happen “as soon as possible to provide the industry immediate relief.”

Exports will be carried out under the US tariff-rate quota system, which typically offers higher prices than the world market. The Philippine allocation for the current season is 100,000 MT, which is a reduction from the original quota of 143,000 MT after delays in the Philippines’ participation.

SRA Administrator Pablo Luis S. Azcona said the approval to export reflects improved production levels and is needed to rebalance supply and demand.

“The volume exported is growing as well, from 33,000 tons to 66,000, and now 100,000 tons.  The last two years, exports of raw sugar have helped increase our farmer prices. This year, this is a much-needed step that our farmers need,” he was quoted as saying in a statement.

Mr. Azcona also flagged a sharp rise in imports of artificial sweeteners and sugar substitutes, which he said have reached volumes equivalent to more than 500,000 MT of raw sugar.

He said these substitutes have diluted demand for domestically produced sugar and helped weaken prices.

Mr. Laurel said the DA is monitoring imports of artificial sweeteners and may consider regulating their entry if market disruptions persist.

He added that the Department of Health may be asked to review the public health implications of widespread use of intense sweetening agents, citing guidance from the World Health Organization.

The DA said the decision to export to the US is intended as a short-term measure to address supply imbalances, while longer-term policy adjustments may be needed to stabilize prices.

The DA and the SRA have extended the moratorium on sugar imports until December this year to protect domestic producers. — Vonn Andrei E. Villamiel