US importing additional sugar from RP

THE PHILIPPINE Sugar industry has sweet work to do as the premium US market seeks more sugar from the Philippines on top of an existing quota.

The Philippines has been saving 50,000 tons of its locally produced sugar for just such an occasion even as it went back to being a net importer after eight years of being an exporter.

Serving the US market despite the temporarily tight global supply situation strengthens the Philippines’ position as a reliable supplier—something stakeholders say would be an advantage when global supplies stabilize and exporters scramble for orders from the United States.

The Office of the United States Trade Representative has announced additional country specific allocations for 181,000 metric tons of imported raw cane sugar.

Of the total volume, the Philippines has one of the biggest allocations at about 13.5 percent or 24,571 metric tons.

“This quantity is in addition to the minimum amount to which the United States is committed under the World Trade Organization Uruguay Round Agreements,” the US agency said in a statement posted on its website.

The 24,571 tons brings additional US orders to about 36,000 tons. In March, the United States asked the Philippines to deliver 11,706 tons of sugar as other quota holders failed to complete their allocation.

The Philippines’ minimum allocation is 137,000 tons.

The Philippines has already completed its minimum allocation and the additional orders can easily be covered by the reserve of 50,000 tons, newly appointed Sugar Regulatory Administration chief Bernard Trebol said in a phone interview.

Trebol also noted that the Philippines is protecting its long-term trade relationship with the United States, which pays more for sugar than other players in the international market.

“The tightness in supply we experienced early this year is only temporary while the US premium market is a long-term customer of the Filipino sugar farmer even if world market supply stabilizes and prices crash. We are looking at the long term strategy of exporting Philippine sugar at a premium price, and if there is some tightness in supply, we can get cheap imports as needed,” Trebol said.

source: business.inquirer.net