The entry of the Philippines' share of the US sugar quota at zero tariff was included in side discussions during the visit of US President Barack Obama to the Philippines early this week, Sugar Regulatory Administrator Ma. Regina Martin said yesterday.

Agriculture Secretary Proceso Alcala and United States Trade Representative Michael Froman discussed the  r enewal of the Generalized System of Preferences (GSP) that allows Philippine sugar exported to the United States to enter at zero tariff, she said.

Philippine sugar exports to the US have enjoyed duty-free tariff under the GSP, which expired in July 2013, she said. Because of that Philippine sugar exports to the US had to pay the required tariff, she said.

“A re-authorization of the GSP will be beneficial not only to sugar but to other agricultural exports of the Philippines,” which is now under study by the US, Martin said.

The Philippines is the third-largest quota holder under the current US sugar quota program set at minimum of 1,117,195 metric tons raw value. The Philippine share is about 13 percent, after Brazil and the Dominican Republic, she said.

Meanwhile, Martin said the SRA is closely monitoring the increase in domestic sugar consumption.

She attributed the hike in domestic sugar consumption to the intense heat that has increased softdrinks' sales, and to the elimination of sugar smuggling.

As of week ending April 20, the Philippines has already produced 2,294,719 MT of raw sugar which is down by 1.91 percent from the same period last crop, she said. The bottom line of the production is that we are now 97.36 percent to our target of 2.356 million metric tons, with 2.6 percent more to go, she said.

She assured that despite this and the increase in consumption, the Philippines will have enough supply, and will not need to import sugar.

Should domestic supply drop, sugar allocated for the world market can always be converted for domestic consumption, she said.

Millgate sugar prices are at about P1,614 per Lkg and retail prices have stayed below P50 per kilo, she also said.*CPG

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