The Philippines has exported an additional 56,092.25 metric tons (MT) of sugar to the United States at lower tariff rates under a preferential trading scheme.
However, data from the Sugar Regulatory Administration (SRA) showed that the volume was lower than the 61,154.49 MT in additional allocation granted by Washington to Manila for fiscal year 2017.
Philippine Sugar Millers Association Executive Director Francisco D. Varua told the BusinessMirror that the scarcity of “A” quedan-permit holders made it difficult for traders to fill up the entire volume.
“But it will not have any implications on our exports as the shortfall is only small,” Varua said.
The SRA also said the 56,092.25 MT was the only volume covered by the total verified “A” quedan permits. Earlier, the SRA issued Sugar Order 6, which authorized the extension of the verification period for the quedan permits of “A” sugar, or those bound for the US, to August 11.
The SRA, a government-owned and -controlled corporation attached to the Department of Agriculture, noted that the Philippines has a carryover volume of 57,684 MT of “A” sugar after filling up the original quota of 136,188.54 MT.
Data from the SRA obtained by the BusinessMirror showed that sugar millers and traders shipped the additional 56,092.25 MT in two vessels. The first boat, which contained 31,105.02 MT, is expected to arrive in Washington by October 25. However, the second vessel, which held 24,987.23 MT, left for the US only last week.
Under the tariff-rate quota (TRQ) system of the US, sugar exporters must ship their allocations for fiscal year 2017 on or before October 31.
“We are worried about the last vessel, if it would be able to reach the US by October 31. Washington will still allow our shipment to enter the US, but it will be charged against the new quota [for fiscal year 2018],” Varua said.
“We still have two weeks to go; normally it takes 20 days to ship sugar to the US if the weather is fair. I think there is still a very good chance that the vessel would reach the US by October 31,” he added.
Varua said port congestion delayed the shipment to the US, as the schedule for exporting sugar under the TRQ coincided with the cut-off for “D” sugar, or those bound for other markets. He said the SRA has set the deadline for shipping “D” sugar on November 30.
“Vessels bound to the US and the world market queued in our local ports. There were congestions in ports in the Visayas, Cagayan de Oro and in Bacolod,” he said.
For fiscal year 2017, which ran from October 1, 2016 until September 30, the US granted the Philippines a total sugar quota of 197,355 MT.
Sugar traders have earlier welcomed the additional quota, saying this would help reduce the country’s high inventory and stabilize prices.