Tokyo, Jakarta buy sugar

At least two countries have placed orders to buy Philippine sugar, the Sugar Regulatory Administration said Monday.

“Japan has ordered for 37,000 metric tons and Indonesia for 8,500 MT,” SRA manager for planning Rosemarie Gumera said in an interview.

Gumera said the agency also received inquiries from South Korea and China about possible shipments.

The Philippines said it could export as much as 100,000 MT of sugar to the world market due to excess local production.

The volume is on top of the approved sugar exports of 213,333 MT to the US under an export quota scheme. Philippine sugar shipments to the US enjoy a premium price over regular American sugar imports.

The Philippines so far has exported 140,850 metric tons to the US. About 52,835 MT are ready for loading to fully comply with the US volume of 136,200 MT and the first additional quota of 57,485 MT.

Sugar producers and traders have until the end of September to export excess sugar production.

The Philippines has estimated an excess sugar output of 300,000 MT for crop year 2010-2011. Local demand is about 2 million to 2.1 million annually.

SRA administrator Ma. Regina Martin earlier said it was necessary for the Philippines to export the excess sugar output to maintain the stability of local prices “at levels reasonably profitable to the producers and still fair to consumers.”

Sugar output as of June 26 hit 2.357 million MT, or more than the initial projection of 1.96 million MT.

The bumper harvest has prompted the government to stop sugar imports. The Philippines in 2010 allowed the private sector to bring in as much as 150,000 MT of sugar due to poor production and to stabilize local prices.

The price of local sugar remains stable at P58 to P60 per kilo.

The Philippines earlier received a second additional sugar export quota of 19,648 MT from the US.

The agency said the volume was on top of the the 60,000 additional allocation announced in April 2011, after lobbying efforts of the Philippines with the US Trade Representative and the US Department of Agriculture.

The Philippines is one of the preferred countries enjoying an annual sugar tariff rate quota to the US market. The US gives premium to imported raw cane sugar from preferred countries. –Othel V. Campos, Manila Standard Today