The Sugar Regulatory Administration (SRA) has lowered the sugar allocation for the export market, because of increasing demand in the local market amid decreasing sugar production.
In Sugar Order 1A, SRA Administrator Ma. Regina Bautista-Martin ordered the reallocation of “D sugar” or world market sugar for “B sugar” or domestic market sugar, in order to meet the increasing demand for the sweetener in the local market.
“While the current crop year’s production is on the downtrend, the records show that our local demand or consumption for sugar is increasing,” Martin said.
The SRA chief added that it is necessary for the agency to reallocate world market sugar to the local market, stressing that projected sugar buffer stock may hit a critical level by the end of the crop year 2013 to 2014.
“The SRA conducted periodic assessments wherein it was determined that due to the adverse effect of the series of severe climatic disturbances befalling the country, which directly impacted sugar production,” Martin said.
“Our national sugar production will be reduced to more or less 2.356 million metric tons [MT] for the current crop year,” she added.
To recall, the SRA said that it expected sugar production for crop year 2013 to 2014 to reach 2.45 million MT, roughly the same level as the actual production of 2.45 million MT in the previous crop year.
Of the total projected volume, Martin said that the agency has allocated 2 percent for “A sugar” or US sugar quota, 12 percent for “D sugar” or world market sugar, and 86 percent to “B sugar” or domestic market.