THE UNITED STATES has initially allocated the Philippines a sugar quota of about 142,160 Metric Tons Raw Value (MTRV), to be filled within the market year.
According to Sugar Order No. 2 posted on the Sugar Regulatory Administration’s website, the quota, equivalent to 136,201 Metric Tons Commercial Weight (MTCW), is expected to be shipped in the 2017-2018 quota year on a “first-come, first-served” basis.
“There is a need to ensure that the full quota is actually shipped to the United States after the verification of ‘A’ quedans has been accomplished,” according to the order, dated Nov. 20.
The Philippines is one of the countries given an annual allocation of sugar export to the US market under a tariff-rate quota scheme.
Manila has a regular US sugar quota of 138,827 MT in regular form or 142,160 MT in raw form but this volume may increase depending on Washington’s assessment of the stability of its stocks.
Aside from serving as a reliable market with higher sugar prices, the US quota helps the Philippines stabilize its supply and prices.
Sugarcane output in the crop year 2017-2018 is expected to hit 2.38 million metric tons, down 4.8%.
Domestic requirements are usually filled with 80% of the output while shipments to the US and to world markets are each allocated a 10% share totaling about 238,000 metric tons. — Janina C. Lim