SRA extends sugar exports to world market until end-Dec.

The Sugar Regulatory Administration is extending the deadline for exporting the commodity to the world market from Sept. 30 to Dec. 30, saying it will help stabilize domestic prices. The Philippine sugar industry has a surplus of almost nearly 400,000 metric tons (MT) as of last month. This is the second extension the SRA has extended the deadline for exporters to ship sugar to the world market after the deadline on July 15 was extended to Sept. 30. Sugar Order No. 11, the SRA said Monday, allowed exporters to advance the "swapping" of "B" sugar to "D" sugar. ‘B" sugar refers to allocations for domestic consumption and “D" sugar is designated for export to the world market outside the sugar quota for the US market. "At the end of crop year (CY) 2010-2011 (or Aug. 31,2011) or beginning CY 2011-2012 (Sept. 1), it is expected that there will be a significant volume of carry-over stocks of 'B' or domestic sugar resulting in excess sugar vis-a-vis domestic demand," said SRA administrator Ma. Regina Bautista-Martin, citing the Sugar Order. "It is of national interest to place those engaged in the sugar industry in an environment of economic viability by disposing of the excess sugar of CY 2010-2011 as early as possible in order to stabilize the prices of 'B’ sugar at levels reasonably profitable to the producers and still fair to consumers," according to the order. This means that the application for advance-swapping of "B" or domestic sugar into "D" or world market sugar is already open to all--sugar producers, traders and sugar exporters. "The advance-swapped 'B' to 'D' sugar allowed in section 1 of SO No. 11 may be replenished by an amount of 1.2 bags for every bag of advance-swapped... if and only if the sugar representing said quedan-permits have actually been physically exported to the world market," the order also stated. Sugar output as of June 26 has already reached 2.357 million MT, or more than the initial forecast of 1.96 million MT. The Philippines plans to export at least 100,000 metric tons to the world market before the end of CY 2010-2011. — VS, GMA News