Sugar Group Calls for ‘Status Quo’ of Sugar Quota

The Asociacion de Agricultores de La Carlota y Pontevedra, Inc. (AALCPI) is recommending to maintain the status quo of sugar classification for the coming milling season.

AALCPI President Roberto Cuenca said he is recommending to the Sugar Regulatory Administration in its issuance of Sugar Order No. 1 to classify ninety-five percent (95%) of sugar produce as B and five percent (5%) as A sugar for this crop year which will start September.

“The said percentage classification takes into consideration the present situation and the balance between ensuring sufficient domestic supply while maintaining the status quo of a readily available export market to the United States,” Cuenca said.

Although we like to have an all-B classification, we cannot be assured of the demand in these times and so we have to maintain the balance, Cuenca added.

Cuena also stressed that the A sugar quota should be “without replenishment rights.” This was in reference to the sugar order in the last crop year wherein SRA approved the importation of sugar as replacement for the US quota to address the gap in domestic supply.

He, however asked that “SRA should be on top of the situation” and make sure they have enough and accurate data “to determine if that classification is viable as we forge into the milling season.

Cuenca said that demand for sugar usually peaks by December in time for the holidays and the second peak is towards summer. “But given the present situation, if this continues, SRA must revisit the classification and respond to it accordingly.”*