SRA may convert domestic sugar for US market
The Sugar Regulatory Administration (SRA) on Friday said it may convert Philippine B sugar to A sugar following a recent spike in demand from the United States. A sugar refers to US sugar quota the government tries to meet every year, while B sugar refers to those allocated for domestic consumption. “If we will need more A’s, [then the] B quedan will be converted into A with certain guidelines and incentives. I think we may hit our demand volume," said SRA Administrator Ma. Regina Martin. The agency has already issued an order calling for an inventory of the existing quedan — a document certifying the amount of sugar a planter has to his credit at a sugar mill — for A sugar. As a negotiable instrument, the quedan may be sold or used to pay for transactions and its holder may claim the corresponding amount of sugar from the mill. The conversion comes after the US Department of Agriculture (USDA) hiked its sugar quota by another 60,000 metric tons (MT) last month, following an imminent shortage caused by the hard freeze in Florida. This brings the Philippines' sugar export volume to the US to 196,201 MT this year. Based on the SRA order, the “first come-first served" policy will apply in allocating the additional US quota among Philippine sugar traders and exporters. Nomination of vessels by qualified sugar traders and exporters will be required to ensure the timely delivery of the additional US quota, according to the order. The deadline for verification of the A quedan for crop year 2009-2010 is on May 15, and the deadline for the shipment is 30 days after verification, it added. —JMT/VS, GMA News