The Philippines is set to export 25,300 metric tons (MT) of raw sugar from Negros Occidental to the United States, fulfilling its quota commitments. Pablo Luis Azcona, Administrator of the Sugar Regulatory Administration (SRA), noted that the country had previously faced challenges in meeting its U.S. export quota due to lower-than-expected production. Last month, the SRA approved the export to meet the U.S. sugar quota allocation.
According to Sugar Order 3, issued by the SRA, this voluntary export of locally produced raw sugar allows the Philippines to comply with its obligations under the U.S. Raw Sugar Tariff-Rate Quota World Trade Allocation after several years of non-compliance. The sugar is currently being loaded onto a cargo vessel at Bredco Port in Bacolod, with shipment to the U.S. expected soon. Azcona, who inspected the manual loading process, expressed gratitude to the participating traders, acknowledging that they are exporting the sugar at an estimated loss of P900 to P1,200 per bag.
Last year, about 30 sugar traders responded to the administration’s call to purchase domestic sugar, helping stabilize farmgate prices that had fallen to P2,400 per bag. In return, these traders were granted the opportunity to import and export sugar as needed.
The traders initially purchased raw sugar at an average price of P2,700 per bag, selling it at the U.S. export price of P1,800 per bag, resulting in a loss. Azcona noted that these traders might recover some of their expenses through future opportunities to import refined sugar, considering the cost of money and associated fees. With an estimated 1,500 MT being loaded each day, it is expected to take around 15 days to complete the loading process, weather permitting. The shipment is anticipated to reach the U.S. in approximately 30 days. Azcona also thanked Bacolod City Mayor Alfredo Abelardo Benitez for lifting the truck ban on sugar-loaded trucks headed to the port, expediting the loading process.
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