SRA reduces sugar allocation to US, world market
Sugar Regulatory Administration (SRA) decided to reduce the country’s sugar allocation to US exports as well as to other countries, while alloting as much as 93 percent to domestic market on the expectation that the demand will increase while output will be on a downtrend.
According to Sugar Order (SO) No. 1-A, SRA reduced the allocation of sugar to US (“A”) to 6 percent, while the allocation for world market sugar (“D”), or those for export to other countries, was slashed to 1 percent.
At the same time, SO 1-A increased the country’s sugar allocation to domestic market (“B”) to 93 percent from the 80 percent.
This, as the domestic demand is expected to be around 2.17 million metric tons (MMT).
“The domestic market remains as the priority market for locally produced sugar, and it is of national interest that a comfortable buffer, or carry-over volume, of “B” sugar during the end of season and for the start of the next crop year for stable supply and prices,” SRA said.
For crop year 2017 to 2018, local raw sugar production is expected to be less than 2.38 MMT on the weight of unfavorable weather conditions.