The Philippines will start shipping sugar overseas in November, a month earlier than usual, to make room for new stock and keep prices of the commodity in the domestic market stable, the Sugar Regulatory Administration (SRA) said Friday.
“We have to decongest our warehouses for incoming inventory,” SRA manager for Planning Rosemarie Gumera said in an interview with reporters on Friday.
“At the rate of milling this season, our warehouses will be full to the brim if we will not start shipment ASAP,” she added.
The early shipment of Philippine sugar would also keep domestic prices from fluctuating, the SRA official noted. “We just want prices to be at the same level they are right now.
“Refined sugar should be selling at P50 to P54 per kilo while washed sugar should be price not more than P58 per kilo,” said Gumera.
Based on the SRA’s shipment program much of the sugar for foreign market would come from surplus output based on world market prices or the current price in the United States.
The surplus on hand consists of 40,952.8 metric tons (MT) of “A” for the US quota and 55,853.24 MT of “D” for the world market. These volumes are ready for export.
More millers started operations early this crop year 2012-2013 with nine mills now in full swing. Only three mills were churning out sugar a year earlier, according to the SRA.