The Sugar Regulatory Administration (SRA) obtained a customs clearance to ship 25,300 metric tons (MT) of raw sugar to the United States from the Bredco port in Bacolod City on Tuesday, Sept. 3.
Cargo vessel Tate J was originally estimated to sail at 10 a.m. on Monday but was moved to Tuesday due to unfavorable weather.
“Loading and cargo trimming or leveling is expected to be finished today (Monday),” the SRA said in a statement, adding that the shipment will arrive in California in a month.
Sugar Order No. 3 allows “the Philippines to fulfill its US quota allocation of 25,300 MT,” the first export of sugar this year to participate in future import programs.
“It will take 30 days for the cargo to reach US soil. This will balance out the supply of raw sugar in the country when milling starts this September,” SRA Administrator Pablo Luis Azcona said earlier.
According to the SRA, 30 sugar traders participated in the administration’s call last year to buy domestic sugar to stabilize farmgate prices that dropped to a low of P2,400 per bag of 50 kilograms.
Under the arrangement, they are allowed to import and export when needed.
Traders bought raw sugar at an average price of P2,700 per bag and sold it at the US export price of only P1,800 per bag.
“They are exporting sugar now at an estimated loss of P900 to P1,200 per bag of sugar,” Azcona said, pointing out that the opportunity to import refined sugar will give them a little profit to recoup their expenses.*PNA