Sugar millers oppose scheme linking import eligibility to exports under US quota scheme
THE Philippine Sugar Millers Association (PSMA) reaffirmed its opposition to any Sugar Order that would tie eligibility to import sugar with exports of raw sugar to the US.
In a statement on Wednesday, the PSMA said such a scheme could exacerbate the current glut, which has depressed millgate prices in recent years.
“Currently, our country has unprecedented sugar inventory levels brought about by excessive imports over the past three years,” the association said.
The PSMA said current inventory levels should be brought back to levels it considers healthy — equivalent to about two months of national demand.
The PSMA also urged the Sugar Regulatory Administration (SRA) to exercise its powers rather than create new mechanisms that guarantee future imports to compensate exporters.
“Linking exports to guaranteed import replenishment can have serious long-term negative impact on the viability of the sugar industry… any import volume must be (calibrated to match) an actual shortfall. Doing otherwise puts the viability of this industry in jeopardy,” the association added.
The group recommended that for US shipments, the SRA issue “A” quedans, official certificates that confirm sugar allocations for export, without creating expectations of additional imports. — Vonn Andrei E. Villamiel
You May Also Like
Robinhood’s New Move: MNT Coin Joins the Roster
Microsoft Corp. $MSFT blue box area offers a buying opportunity
