RP eyes exporting 65,000 MT more sugar under US import quota

THE Philippines is hopeful of exporting an additional 65,000 metric tons (MT) of “A” sugar next year under the tariff-rate quota (TRQ) scheme of the United States government.

Rafael Coscolluela, administrator of the Sugar Regulatory Administration (SRA), noted that there are indications that the US could import an additional 500,000 MT of sugar.

“There are indications that the US will import more sugar next year based on their stock-to-use ratio,” said Coscolluela at the sidelines of the signing of the Joint Administrative Order (JAO) 2008-1, or the Omnibus Guidelines on Biofuels in Fort Bonifacio, Taguig City.

The additional volume, which the Philippines is hoping to ship out to the US next year, represents the usual 13 percent share of the country under the US TRQ scheme.

For fiscal year 2009, the US allocated 137,000 MT of sugar under TRQ. Coscolluela said the entire volume will be shipped out until January next year.

The Philippines made its first shipment of “A” sugar to the US as early as September as part of its early export program. Coscolluela said before the end of 2008, the Philippines would have shipped out some 75,000 MT of sugar to the US.

The early export program was undertaken by the SRA as part of efforts to stabilize the price of sugar in the local market, following the 30-year high production of sugar for crop year ending August 31, 2008.

The country produced almost 10 percent more raw sugar for the previous crop year, but local demand has remained flat.

For crop year 2008-2009, the Philippines is projected to produce 2.426 million metric tons (MMT) of sugar, 2.413 MMT for crop year 2009-2010, and 2.199 MMT for crop year 2010-2011.

Meanwhile, the Department of Agriculture and its attached agency, the SRA, and other government agencies including the trade, finance, labor and energy departments signed JAO 2008-1 on Wednesday. The JAO contains the omnibus guidelines for the investors and stakeholders of the biofuels industry.

“These guidelines are meant to help the country attract more investors in our biofuel industry,” said Energy Secretary Angelo Reyes in a press briefing on Wednesday.

The JAO provides for the creation of a “One-Stop-Shop” that will accept, screen and process applications for certifications, licenses and permits to operate as a biofuel feedstock producer, biofuel and biofuel blend producer, distributor and reseller.

Reyes noted that there is a need to attract more players in the biofuel industry, as local demand could not keep pace with production. In fact, the energy department noted that the Philippines would import 184 million liters of ethanol next year.

So far, only two bioethanol plants will become operational next year—the San Carlos Bioenergy in Negros Occidental, which has the capacity to produce 30 million liters per year, and the Leyte Agri-Corp. in Ormoc, Leyte, which has the capacity to produce 9 million liters a year.

Coscolluela said three or four investors could start construction of their plants by next year.

The Biofuels Act mandates that two years from the effectivity of the law, at least 5 percent bioethanol shall comprise the annual total volume of gasoline sold and distributed by each and every oil company in the country subject to the requirement that all bioethanol blended gasoline shall contain a minimum of 5 percent bioethanol by volume.