THE sugar regulator issued an order calling for voluntary exports of 66,000 metric tons (MT) of raw sugar to the United States.
Sugar Order No. 5, issued on Wednesday, allows the Philippines to fulfill its obligations under the US Raw Sugar Tariff-Rate Quota World Trade Allocation, the Sugar Regulatory Administration (SRA) said.
Participants in the export program will enjoy priority in future import programs.
Participants complying with the order will be allowed to import 2.5 kilograms of refined sugar for every kilogram of raw sugar exported to the US.
The Office of the US Trade Representative gave the Philippines a quota of 145,235 MT raw value of raw cane sugar to the Philippines for the year to September.
Potential participants have until March 30 to submit to the SRA a written and notarized undertaking stating the amount of sugar they plan to ship to the US.
SRA Administrator Pablo Luis S. Azcona has said that the industry lobbied to export 66,000 MT of sugar instead of the initial 60,000 MT, to maximize the use of the cargo ship.
Segments of the local industry, including farmers, oppose sugar exports to the US because the US buys the commodity at a lower price.
“Sugar is bought by traders at US prices, which is about P1,000 less than domestic prices. That’s why farmers complained,” Mr. Azcona said last month, noting that the then-draft order incorporated the industry’s concerns. — Kyle Aristophere T. Atienza