PHL to divert excess sugar to world market as US rejects add'l quota

The Philippines may divert excess to the world market after the US said it could not give an additional quota to the Philippines beyond the approved 202,160 metric tons (MT). “No additional [quota] for now. [The] US replied to my query [and said] they will inform us if other countries will not deliver by July or August," Sugar Regulatory Administration (SRA) Administrator Ma. Regina Martin said on Tuesday. In May, the SRA announced plans of converting Philippine B sugar to A sugar after the US increased the Philippine sugar quota by 60,000 MT because of a shortage caused by a hard freeze in Florida. [http://www.gmanews.tv/story/219849/business/sra-may-convert-domestic-sugar-for-us-market] Martin said that the Sugar Board has not yet decided on the volume as she is still out of the country. Once Martin arrives, the agency will issue a sugar order for the world market export volume on top of the existing US sugar quota for the year. As of May 2011, the country has loaded 85,000 MT of sugar with another 30,000 MT on the way to the US. The deliveries, including the additional sugar allocation will be completed by Sept. 30, 2011. Philippine sugar output for the 2010-2011 crop year that will end next August has already exceeded the government’s initial forecast of 2.033 million MT, prompting the SRA to request for an additional US sugar quota and consider exporting to other markets. The agency will not be importing sugar for 2011 because of the good harvest. — BC/VS