THE Sugar Regulatory Administration (SRA) has approved the export of 25,300 metric tons (MT) of raw sugar to the United States in a bid to secure future allocations.

Sugar Order (SO) 3, released on July 26, states that participation is open to qualified parties under SO 2 with sugar quedans dated Jan. 28, 2024 or earlier.

SRA Administrator Pablo Luis Azcona said the Philippines was previously unable to meet its US export quota commitments due to insufficient output.

The SRA said that local production for the current crop year had reached 1.92 million MT, surpassing the previous year's output by more than 120,000 MT "and likewise allowing the Philippines to fulfill its US quota allocation."

"The intention of this voluntary US export of 25,300 MT of locally produced raw sugar is to allow the Philippines to fulfill, after a non-compliance of more than three years, its obligations under the significantly reduced US Raw Sugar Tariff-Rate Quota World Trade Allocation," the order stated.

This will be the first export in fulfillment of the US sugar quota allocation for this year, the SRA said.

SO 3 takes effect three days after the date of its filing with the Office of the National Registrar at the UP Law Center in Diliman, Quezon City.

Sugar intended for export is classified as "A" sugar, which is typically priced lower than that meant for the domestic market. The SRA said participants had "expressed their willingness to help the government fulfill its allocation under the US sugar quota despite the lower return therefore and the additional cost and uncertainty inherent to the exportation of sugar."

In November 2023, the Philippine government requested a reallocation of the US quota granted in May this year. The SRA said the export plan was a step toward maintaining the country's commitment to international trade agreements and improving future trade opportunities.

The export participants will be given priority in future government sugar importation programs based on the volume of sugar exported to the US.

The SRA said that it would monitor the export process to ensure compliance with the terms outlined and also adjust policies as needed to support the local sugar industry.

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