The Sugar Regulatory Administration (SRA) has scrapped exports to the world market and diverted its allocation to the domestic market as production fell below target, a senior official said on Wednesday.
SRA Administrator Ma. Regina Bautista-Martin said the re-allocation was brought about by unfavorable weather conditions that affected the crops in sugar plantations in the Visayas region.
“Rains at the start of the sugar milling season in September 2014 affected the maturity of the canes,” Martin said.
The country allocates five percent of total production to the world market and 90 percent to the local market. The re-allocation brings to 95 the total allotment for the local market for crop year 2014-2015, which ended last March 15.
Total raw sugar production for crop year 2014-2015 is estimated at 2.465 million metric tons. It is lower than the initial projection of 2.5 million metric tons, but higher than last year’s level.
Martin said the country retained its annual five percent sugar quota to the United States in line with its commitment to the World Trade Organization.
She said the Philippines has an annual US sugar quota of 138,827 metric tons, which is sold at a premium and under relatively low tariff.