There will be no increase in the Philippines annual share of the US sugar quota because the United States and Mexico have a huge supply this crop year, Harry Kopp, Washington representative of the Philippine Sugar Alliance, said yesterday.
Kopp, who met with sugar leaders in Bacolod City at a dinner hosted by National Federation of Sugarcane Planters president Enrique Rojas at his residence, updated them on the sugar situation in the United States.
US Trade Representative Ron Kirk had earlier announced that the Philippines shares of the US sugar quota for Fiscal Year 2013 (Oct. 1, 2012 through Sept. 30, 2013) will be 144,901 metric tons raw value (MTRV).
Kopp said the United States this crop year has produced more than eight million metric tons of sugar, its highest level in 13 years.
Mexico’s production is more than six million tons of sugar, the highest ever in that country, he added.
Mexican sugar is imported freely into the United States, he said.
The prices of the sugar in the United States are higher than the world market, Kopp said.
Kopp also said the supply of sugar worldwide is also high, which means there will be a substantial surplus over consumption.
Sugar is the most volatile commodity traded internationally, he said.
But Rojas said the non increase in the Philippine share of the US quota will not affect local producers.
“Our production for this crop year is just sufficient for our regular US quota and our domestic consumption, with a little extra for the world market,” Rojas explained.*CPG