RP sugar glut seen easing with import ban

RP sugar glut seen easing with import ban

MANILA (Reuter): The Philippine sugar sector, now soaking from
a glut due to over importation at cheaper prices, got a reprieve
yesterday after the government extended an import ban up to July
this year.

"We have extended the sugar import ban to July, at which time
we expect the glut to have eased," Sugar Regulatory
Administration (SRA) chief Wilson Gamboa told reporters at a news
conference.

In October last year, Gamboa asked traders and millers to stop
sugar imports up to March this year.

The order was issued to ensure that the large stocks of sugar
in the country's warehouses were exhausted.

Gamboa said he expected the sugar glut to be mopped up by June
or July this year with the import ban and after the U.S.
government increased the country's sugar quota by 27,411 tons for
crop year 1996-1997 (Sept-Aug).

The U.S. government pegged the Philippines' sugar quota at
219,000 tons at the start of the current crop year.

The Philippines is a beneficiary of a yearly U.S. sugar import
program from developing countries at premium prices.

On Tuesday, the U.S. government announced an increase by
200,000 tons of its sugar imports in the current crop year. It
had earlier set total sugar importation at 1.7 million tons.

Philippine sugar millers and planters welcomed the twin
developments.

Philippine sugar millers and planters have asked the
government to suspend the tariff discount on sugar given to
Association of South East Asian Nation (ASEAN) countries, which
is expected to drop from the present 65 percent to 52.5 percent.

The tariff on Philippine sugar from non-ASEAN countries is
also scheduled to drop from 100 percent to 80 percent by July 1
as part of the country's commitment to the World Trade
Organization.

Early this year, Agriculture Secretary Salvador Escudero had
asked the Tariff Commission to raise the tariff on imported sugar
to 133 percent from 100 percent from Jan. 1 to June 30, 1997, and
to 100 percent from 80 percent from July 1 to Aug. 31.

The Philippine Tariff Commission has yet to act on Escudero's
request.

The domestic sugar glut was due to the importation of 1.023
million tons of sugar from neighboring countries in crop year
1995-1996 (Sept-Aug) against production shortfalls of 500,000
tons, Gamboa said.