Government OKs 66,000 MT raw sugar export to US

MANILA, Philippines —   The Sugar Regulatory Administration (SRA) has approved the export of 66,000 metric tons (MT) of raw sugar to the United States.

This marks the second straight year the country would be fulfilling a portion of its raw sugar quota to the US.

The SRA board issued Sugar Order (SO) 5 yesterday that outlined the guidelines for the export program in the current crop year 2024-2025.

The export program is seen to reduce domestic stocks to keep the farm gate price of the commodity stable.

The 66,000 MT of raw sugar to be exported to the US would be sourced from stocks bought by eligible players at a premium under the SRA’s SO 2 program or the voluntary purchase program.

The total export volume would be allocated among the eligible entities that filled the first part of the SO 2 program amounting to 120,000 MT.

The entities allowed to participate in the export program are Universal Robina Corp., All Asian Countertrade Inc., San FDO Eric Commercial Inc., Victorias Milling Co. Inc., Agro Bulk Marine Corp. and Oro Allado Commodities Inc.

Other eligible exporters would be Hermano Oil Manufacturing & Sugar Corp., Edison Lee Marketing Corp., La Perla Export Sugar Corp., Commtrades Group CTG Inc. and Sucden Philippines Inc.

Wilmar Edible Oils Philippines Inc., Commodity Carriers & Shipping Corp., Adlerberg Industrial Corp., Iberian Trading Corp. and Delmax Corp. may also participate in the export program.

SO 5 stipulated that the raw sugar to be exported to the US must leave the country not later than Aug. 15.

The participating exporters would be allowed to import sugar in future import programs of the SRA at a ratio of 1:2.5. This means that the entities would be allowed to import 2.5 kilos of sugar for every kilo of raw sugar that they ship to the US.

Usually, eligible traders and millers export raw sugar to the US at a loss since they sell the commodity at a price considerably lower than the value they bought it.

However, they are able to recoup their losses and somehow make a profit through a replacement program that allows exporters to import refined sugar based on an approved ratio.

Under SO 5, the total import volume that would serve as replenishment to the exported raw sugar would be about 165,000 MT.

The Philippines received 145,235 MT raw sugar allocation under the US’ tariff rate quota (TRQ) system that allows entry of commodities at a lower tariff rate.

The Philippines got the third largest TRQ allocation for raw cane sugar in the US’ fiscal year 2025 which runs until the end of September.

The country exported 24,179 MT of raw sugar to the US last year, marking the first shipment that the Philippines made after opting not to export a single volume in the preceding two years (2022 to 2023) because of lackluster production.