By Cielito M. Reganit
MANILA, (PNA) — The Sugar Regulatory Administration (SRA) on Wednesday issued Sugar Order No. 1, the policy on sugar production allocations for crop year (CY) 2014-15.
SRA Administrator Ma. Regina Bautista-Martin said the agency’s Sugar Board approved the production policy allocations during its Aug. 19, 2014 meeting.
The order provides for the market destinations of the new crop’s production: allocating 5 percent for the “A” or U.S. quota; 90 percent for the domestic market; and 5 percent for the world market.
Martin said the estimated sugar production this coming crop year would be about 2.5 million metric tons.
Under Sugar Order No. 1, 5 percent of the estimated production earmarked for “A” sugar would be about 125,000 MT for U.S. quota market.
“With available verified “A” sugar of 11,704 MT which were not shipped out to the U.S. this present crop year, the 5 percent allocation is enough to meet our country’s regular U.S. quota of 136,000 MT,” Martin said.
As of Aug. 10, 2014 actual shipments to the U.S. market has already reached 123,148 MT while about 128,849 MT were delivered to the world markets.
The SRA administrator said she is also anticipating a domestic demand of 2.25 million MT — which is a 2 percent increase in the domestic consumption from CY 2013-14.
The figure meets the per capita sugar consumption of 25 kilos for 88 million Filipinos — excluding the 12 million Oversees Filipino Workers (OFWs).
In the meantime, Martin said that they are closely monitoring market conditions in light of the upcoming ASEAN Economic Community Integration come 2015.
“The SRA will closely monitor supply and demand situations due to the volatility of the sugar market as the Philippine sugar industry prepares for the ASEAN integration next year,” she said
“We would undertake periodic assessments of the CY 2014-15 sugar production and consumption trends and shall take necessary actions to stabilize market conditions,” Martin said.