TO ensure enough stock in the Philippine market, the Sugar Regulatory Administration (SRA) has allowed world market sugar to be reclassified for domestic use.
Sugar Order 7 authorized sugar producers and quedan holders to
reclassify their stocks from “D” or world market sugar to “B” or domestic sugar.
World market sugar produced during the current and previous crop years will be qualified for conversion, SRA Administrator Ma. Regina BautistaMartin said.
“SRA has verified that there is significant volume of D sugar from this crop year and the immediate preceding crop year that have remained unshipped which could further augment stocks for the domestic market, hence SRA came out with a conversion program to reallocate export sugar to the domestic market,” she said.
She noted the conversion program will add up 75,000 metric tons of world sugar to the domestic market.
The sugar order came on the heels of Sugar Order 1B, which stopped the export of the locally produced commodity to the United States.
All sugar to be produced during the current crop year ending in August 2015 would be allotted to the domestic market as production levels fall below target due to a prolonged dry spell.
“The volume of US sugar quota could add up as much as 70,000 MT of sugar for domestic use,” Martin said.
For current crop year, domestic demand is expected to reach 2.25 million metric tons (MMT) with total output already at 2.31 MMT.
“With the two orders, SRA is making sure that there is enough carryover or buffer supply for the start of the next crop year when sugar production has yet to go full swing,” Martin said.
SRA is empowered to establish and maintain a balance between supply and demand to ensure prices are fair to consumers and reasonably profitable to producers.