US may hike sugar quota of RP, SRA says

The Philippines may export higher volume of sugar to the US next year, the Sugar Regulatory Agency said on Wednesday. Rafael Coscuella, SRA administrator, said the country’s sugar quota may increase from 40,000 metric tons to 100,000 metric tons. “Sugar traders have been telling us that the US might increase sugar allocation to quota holders by April 1, 2010, but we’re hoping that the US will make an announcement earlier than schedule," he said. Under the US farm bill, the US Department of Agriculture is allowed to increase its US quota no earlier than April 1 of next year. “It is critical that they (US) announce early. Producers and quota holders like us will have to prepare for additional volume. If they announce April, it might be difficult to produce the volume they will require," Coscolluela said. The Philippine exports around 136,000 MT raw sugar to the US at P1,300 per 50 kilogram bag, 30 percent higher than last year’s price of P1,000/50kg bag. Coscolluela said US sugar prices may even go higher. The Philippine was anticipating the quota hike since last year but none came owing to the staunch opposition of American producers to increase the quota. Manila has cancelled the D sugar or export sugar and instead reallocated it to C1 or the so-called strategic sugar which comprises about six percent of the total output for cropyear 2008-1009 or about 120,000 MT. On September 25, the US Trade Representative issued the FY 2010 Tariff-Rate quota allocations for sugar. The Philippines got the same allocation for FY 2010. Despite opposition from US sugar and beet farmers, Philippine sugar producers said that Manila is equipped to supply the additional requirements of US food companies should Washington decide to increase quota allocations come April 1, 2010. For crop year ending August 31, 2010, the sugar industry projects a growth rate of 5 percent to 2.16 MMT. -GMANews.TV