By Dolly Yasa
BACOLOD CITY – A vessel loaded with approximately 23,500 metric tons of raw sugar is set to sail from the BREDCO port here to the United States today, September 3, 2024.
The shipment is expected to arrive in California in about a month, according to the Sugar Regulatory Administration (SRA) on Tuesday.
In an update to local media on Monday, the SRA reported that the vessel’s hatches remain closed as three trucks of sugar are yet to be loaded. The estimated time of departure is 10 a.m. Tuesday, delayed from Monday due to inclement weather brought by Tropical Storm Enteng.
The 25,300 metric tons of raw sugar from Negros Occidental were loaded onto the cargo vessel at BREDCO Port to fulfill the Philippines’ sugar quota allocation to the United States.
Loading began on August 18, 2024.
Earlier, the SRA approved the export of 25,300 metric tons of raw sugar to the United States to secure future allocations.
According to SRA Sugar Order No. 3, “the intention of this voluntary US export of 25,300 MT of locally produced raw sugar is to allow the Philippines to fulfill, after a non-compliance of more than three years, its obligations under the significantly reduced US Raw Sugar Tariff-Rate Quota World Trade Allocation.”
SRA Administrator Pablo Luis Azcona noted that the Philippines had previously been unable to meet its US export quota commitments due to insufficient output.
Azcona, who inspected the manual loading of raw sugar at BREDCO Port, expressed gratitude to the traders who participated in the program, despite exporting sugar at an estimated loss of ₱900 to ₱1,200 per bag.
He mentioned that about 30 sugar traders responded to the administration’s call last year to buy domestic sugar to stabilize farm gate prices, which had dropped to a low of ₱2,400 per bag.
In exchange, the program allowed these traders the opportunity to import and export sugar as needed, Azcona explained.
He further noted that these traders bought raw sugar at an average price of ₱2,700 per bag and sold it at the US export price of ₱1,800 per bag, resulting in a loss of ₱900 per bag.
Given that these traders will also have the opportunity to import refined sugar, the cost of money and other fees they incurred might provide them with only a small profit to recoup their expenses, Azcona added.
