The Philippines is likely to export a record 587,000 tonnes of sugar to the US and other markets during the crop year to relieve pressure on local prices, an official said on Tuesday.
Sugar output in the year ending August is expected to reach 2.3 million tonnes, up 4.5 percent from 2.23 million tonnes the previous year, based on preliminary data, Sugar Regulatory Administration chief Rafael Coscolluela told reporters. About 15 to 20 percent, or as much as 461,000 tonnes, would be exported to Japan, Indonesia and Singapore, he said.
Another 22,000 tonnes of raw sugar meant for exports and left over from the previous crop also will be shipped. Local producers are eyeing other export markets to take in surplus sugar. They say the excess could depress local prices to as low as 820 pesos ($17.5) per 50-kg bag in the current crop year, down 18 percent from the previous year.
"We're hoping it won't go below that," Coscolluela said. "Sugar prices in the international market are also on a downward trend. There is lots of sugar being dumped internationally due to excess production in major sugar producing countries like India, China, Brazil, Australia and Australia.
"There's no way we can recover from excess production. It may take us two-to-three years to stabilise production as well as the price," he said. About 126,000 tonnes, or around 6 percent of output this year, will be allotted under a quota programme in which the United States buys sugar at prices above global market levels.
The Southeast Asian country is one of 40 developing countries benefiting under the US quota programme. The United States is the Philippines' traditional sugar market. The Philippines started exporting sugar to non-US markets in 2003. Prior to that it was exporting the commodity only to the world's biggest economy.