BY DOMINIQUE GABRIEL BAÑAGA
BACOLOD City – The Confederation of Sugar Producers (CONFED) is pushing to increase sugar export allocation for the crop year (CY) 2020-2021, preferably to the United States, to stabilize prices and supply.
In their position paper submitted to the Sugar Regulatory Administration (SRA), CONFED pushed for a six-percent allocation for “A” and 94 percent for “B” or domestic sugar.
The group further stressed there was no need for “A” sugar replenishment in the coming crop year and that early swap must come from sugar produced in the same crop year.
Furthermore, it added, any “A” replenishment for CY 2019-2020 must be done by Sept. 30, 2020.
Nicolas Ledesma Jr., chairman of CONFED Negros-Panay chapter, said “a six percent A allocation will amount to 131,000 metric tons (MT).
“Add to that the 14,000 metric tons beginning stock balance we have for A sugar, we will have enough allocation to the US market of about 136,500 MT which should balance out our supply considering that projected excess for the next crop is also about 48,000 MT for both raw and refined sugar,” said Ledesma.
With all programs in place, CONFED finds it unnecessary to do “D” or world sugar allocation, Ledesma said, adding that they are also pushing that no sugar importation in the coming year because “prevailing economic conditions will likely lead to a reduction of sugar consumption.”
Earlier, SRA Administrator Hermenegildo Serafica said they were “studying the possibility of exporting surplus sugar to the US to take advantage of Washington’s preferential rate.”/PN
