SRA realigns sugar quota allocations

The Sugar Regulatory Administration (SRA) has realigned its sugar quota allocations to release additional reserve stocks for the domestic market.

SRA administrator Rafael L. Coscolluela said  “A” classified sugar, or those designated for export such as the United States sugar  quota for the Philippines, has been reduced  to six percent from the original allocation of seven percent.

On the other hand, he said “B” sugar, or the allocation for local consumption, has been increased to 89 percent from the original 80 percent.

Coscolluela said there is no more allocation for “C” sugar, which is the sugar reserves. “D” sugar, or the country’s allocation for export to other countries, has been reduced to five percent from the earlier allocation of eight percent.

Coscolluela admitted that the sugar millers’ production has dropped by 50 percent from last month’s output due to lower raw sugarcane production in Negros Island, the country’s major sugarcane producer.

The low production, Coscolluela further said, resulted in a significant increase in sugar prices. Based on the SRA’s monitoring, the retail price of sugar is now at P40 a kilo from the previous price of P35 to P36 a kilo.

Because of the tight supply of domestic sugar and the rise in price, Agriculture Secretary Arthur Yap immediately ordered last week the release of existing reserve sugar supply of about five million metric tons or about 100,000 bags.