The Sugar Regulatory Administration (SRA) of the Philippines is gearing up for the export of raw sugar to the United States, with plans to commence shipments as early as the middle of the year.
According to SRA Administrator and CEO Pablo Luis Azcona, the sugar board is currently seeking proposals from exporters on how to fulfill the allocation recently granted by the US to the Philippines.
"The board is eagerly awaiting proposals from exporters on how to fulfill the allocation. The response so far has been positive, with keen interest from all parties," Azcona stated.
In March, Washington approved Manila's request to export 25,300 metric tons of raw sugar to the US at a reduced tariff rate. The Philippines has until September 30 to fulfill its allocation.
This move aims to bolster domestic farm-gate prices by diverting a portion of the country's sugar supply to international markets amidst decreased market demand.
Discussions are underway regarding the allocation of the quota among interested exporters. One proposal suggests basing exports on the level of support provided to farmers by the exporters under Sugar Order 2, which established a voluntary purchase program incentivizing traders to buy sugar from local farmers.
Additionally, the SRA board is addressing the replenishment program, which permits exporters of raw sugar to import a specified volume of sugar based on an approved ratio.
Once details are finalized, the SRA board will issue a new order authorizing the conversion of domestic sugar to sugar allocated for export to the US.
Azcona anticipates that shipments to the US could occur between June and July, ahead of the next milling season.
The Philippines had ceased exporting raw sugar to the US in the previous two crop years due to domestic supply constraints.
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