Local sugar producers can export as much as 200,000 tonnes of raw sugar to world markets this year on top of its US quota commitments, after a three-year break, with local output set to hit the highest in three years, a senior government official said.
The country will start selling raw sugar this month to Japan and Indonesia, with committed shipments of 35,892 tonnes, said Rosemarie Gumera, manager at the policy and planning unit of the Sugar Regulatory Administration (SRA).
The country’s exports to markets other than the United States, its first since crop year 2007/2008, may help dampen strong world prices, with premiums for J-spec Thai raw sugar dropping to 180 points above New York futures from 500 points last week after the Philippines began selling its sweetener, dealers said.
“A total of 35,892 tonnes are ready for shipment and the destinations are Japan and Indonesia. That’s already a commitment,” Gumera said. “But most probably we can sell as much as 200,000 tonnes this year.” Indonesia is Southeast Asia’s largest sugar consumer.
On Tuesday, the government announced that the country’s quota allocation to the US in the current crop year ending August was raised by 18,824 tonnes to 212,509 tonnes, the second increase in the quota this year. More sugar exports will also prevent domestic prices from further declining, easing the pain of local producers still reeling from the dramatic drop in prices from record highs hit in late 2010.