PH sugar exports soar in January
Philippine sugar exports rose phenomenally in January from a year ago despite prospects of lower production, data from the Philippine Statistics Authority show.
Philippine sugar exports amounted to $48.74 million in January this year, over 42,000 percent higher than $110,000 exported in the same period in 2015.
The Philippine sugar milling season starts from October to November and ends at around April and depends on the timing of the sugarcane harvests.
At the end of December 2015, the domestic inventory of raw sugar amounted to 716,451 tons and the inventory of refined sugar amounted to 240,265 tons.
According to data from the Sugar Regulatory Administration, the local inventory of raw sugar increased to over 1.2 million tons by the end of January and the inventory of refined sugar increased to 405,627 tons.
The increase in the inventory even with the higher exports can be attributed to a ramped up production as more sugarcane is harvested.
Local sugar producers prefer to sell to the US because of better prices compared to what they get from the local market.
The US protects its sugar industry and the price of sugar in the US is about double the price of the commodity in other markets. The US, however, has a sugar quota program that allows countries to bring in sugar at preferential tariffs.
This year, the SRA said the Philippines’ US sugar quota allocation is 135,508 metric tons.