SRA Supports the Call of the PCCI and EDC for Sugar Allocations to Food Processors / Exporters
The Administrator of the Sugar Regulatory Administration (SRA), Rafael L. Coscolluela, assures his support for the country’s food exporters and processors to help maintain the competitiveness of the food industry despite the rising cost of fuel, power rates and other production components.
In crop year 2003-2004, the SRA allocated “D” or world market sugar for export to the international market to flush out excess sugar supply and stabilize the domestic price of sugar. In order to assist the country’s food processors and exporters avail of cheaper sugar at world market prices, SRA promulgated Sugar Order No. 4 & 4-A, series of 2006-07 making the “D” sugar available to the food processors and exporters under the CBW program chargeable to their 2007 import allocation. The “D” sugar was reclassified as “E” sugar prior to its withdrawal by qualified CBW operators and food processors / exporters. Guidelines for the said availment was embodied in Circular Letter No. 9, series of 2006-07.
For crop year 2007-08, the SRA has circularized the list of CBW operators and food processors / exporters with approved sugar allocations, importations and “E” sugar (Circular Letter No. 9, s. 2007-08). However, due to persistent rumors of technical smuggling and leakage of the “E” sugar to the domestic market by unscrupulous holders of allocations earning huge profits at the expense of the industry, the SRA has to evaluate and scrutinize all export documents and sugar requirements of applicants. It continues to seek ways, on the other hand, to facilitate easier availment of “D” sugar by legitimate food processors / exporters.
SRA published in its website (www.sra.gov.ph) all sugar policies such as sugar orders and circular letters, sugar statistical updates and the accounting of “D” quedans for crop year 2006-2007. The total “D” sugar production for the crop year is 134,007 metric tons with a balance of 16,880 metric tons as of October 22, 2007. The country shipped out 61,791 metric tons to the world market while 55,336 metric tons of “D” sugar were sold to the CBW Food Processors / Exporters, at world market prices. The current allocation for “D” sugar is 5% of an estimated 2,280,000 metric tons production which will be enough to meet the requirements of food exporters.
