The United States has raised the Philippines’ sugar export allocation for crop year 2015-2016 despite incurring shortfall in deliveries in the previous cropping season, the Sugar Regulatory Administration (SRA) said yesterday.
The Philippines received an allocation of 142, 160 metric tons raw value (MTRV) for crop year 2015- 2016, up from the export allocation of 138, 800 metric tons (MTRV) in the current crop year.
This is the third largest allocation provided by the US for the new crop year after allotments for the Dominican Republic of 185,335 MTVR and for Brazil of 152,691 MTVR.
Other sugar-producing nations given export allocations under the US tariff rate-quota (TRQ) system for the new crop year are: Argentina, Australia, Barbados, Belize, Bolivia, Colombia, Congo, Costa Rica, Cote d’Ivoire, Ecuador, El Salvador, Fiji, Gabon, Guatemala, Guyana, Haiti, Honduras, India, Jamaica, Madagascar, Malawi, Mauritius, Mexico, Mozambique, Nicarague, Panama, Papua New Guinea, Paraguay, Peru, South Africa, St. Kitts and Nevis, Swaziland, Taiwan, Thailand, Trinidad and Tobago, Uruguay and Zimbabwe.
The allocation covers the new sugar crop year that begins on October 1, 2015 and ends on September 30, 2016.
“As expected, the shortfall in deliveries under the quota in FY (fiscal year) 2015 had no effect on the size of the allocation for FY (fiscal year 2016),” the SRA said in a report.
The TQR system allows countries to export specified quantities of sugar to the United States at a relatively low tariff. The allocations are based on each country’s historical shipment volume to the US.
The total in-quota quantity for the TRQ on raw cane sugar is 1.117 million MTVR, the minimum amount committed by the US to the World Trade Organization (WTO).
For the current crop year, the Philippines reduced sugar exports to the United States and the world market to protect domestic supply and prices as the prevailing dry spell cut production expectations.
The country’s aggregate sugar production is expected to reach only 2. 31 million MT from the original target of around 2. 5 million MT for the closing crop year.
A slowdown in cane production in the Visayas as result of the prevailing dry spell, combined with strong industrial demand is putting a strain on domestic supply.
Cane supply in Negros province –where more than half of the country’s supply produced—is lower because of the intense heat.
The speculation of traders who want to secure supply in the event of a production shortfall is also seen to affect domestic supply.
The SRA has yet to release production expectations for the next cropping season.
Out of the country’s total export quota to the US, only a little over 60,000 MTRV was shipped out. The US, however, assured the Philippines in June the exportation shortfall would not affect future export quotas.
(Source – http://www.blackseagrain.net/novosti/us-hikes-philippine-sugar-exports-quota)