Philippines may speed raw-sugar exports to U.S.
(MarketWatch) – The Philippines is considering stepping up exports of raw sugar to the U.S. to deter excessive supply in the local market that could weigh on prices, the Sugar Regulatory Administration said Thursday.
“There are no scheduled shipments yet to the U.S. What the agency is studying is a proposal by sugar farmers to export to the U.S. earlier than usual, perhaps around December,” Jesus Leocario Barrera, a member of the SRA’s board of directors, told reporters.
Jose Rojo Alisla, SRA chief of staff, said the request follows a considerable decline in local sugar prices to 1,420 Philippine pesos ($34) per 50-kilogram bag compared with PHP1,600/bag two weeks ago.
The Philippines has a sugar export allocation of 138,000 metric tons from the U.S. for next year. This year, exports to the U.S. totaled 211,000 tons following an additional allocation from Washington.
Shipments to the U.S. usually start in January.
The country is also looking to export an additional 150,000 tons to markets such as Japan, Indonesia, South Korea and Vietnam, Alisla said.
Philippine raw sugar output in the 2012-13 crop year beginning Sept. 1 is expected to reach 2.35 million tons, up 5% from the previous crop year.