SRA targeting to export up to 200,000 tons of sugar

BACOLOD CITY, Philippines—Sugar Regulatory Administrator Rafael Coscolluela has announced a plan to export more sugar before the yearend to prop up prices of sugar that would most likely drop due to a record-high production this year.

"The target is to ship out 150,000 to 200,000 tons of sugar to the US and the world markets before the end of December," Coscolluela said on Wednesday, after his speech on the "Guidelines Governing Biofuels" at the 1st Sweet Sorghum Techno-Investment Forum at the Provincial Capitol in Bacolod City.

Coscolluela said he would release Sugar Order No. 1 after consultations with industry stakeholders and a Sugar Regulatory Board meeting next week. The order would provide the means to remove surplus sugar from the country, he said.

The mechanism would call for an advance swapping of "C" or reserve sugar to "A" for the American market so that the Philippines’ US sugar quota share could be shipped out earlier than usual, Coscolluela said.

Coscolluela said he also considered the swapping of old "B" or domestic sugar to "A" or US sugar "so we can remove some of the current surplus."

"We are hoping that with this move, B sugar prices will not drop but remain at its current level," Coscolluela said.

The Philippines would experience this year a 25-year-high record production of 2.454 million metric tons of sugar, close to 10 percent increase over that of the previous year, he said.

Coscolluela said the projected sugar production would be the highest since crop year 1983-84.

He also warned the Philippine sugarcane industry of challenging times that would require belt-tightening measures over the next two years.

The industry would have to contend with the rising costs of fuel and fertilizer, a surplus in production that would drive down prices, and the prospect of the lifting of tariffs on imported sugar, Coscolluela said in an interview.

He attributed the production increase to the use of high yielding varieties, better cultural practices and the leasing of farms by so-called professional farmers.

"The industry is a victim of its own success. We are producing too much," he said.

To prevent domestic sugar prices from dropping, "we are going to have to export surplus sugar by December," Coscolluela said.

source:business.inquirer