The Sugar Regulatory Administration no longer allows the advance swapping of "A" or export sugar to "B" domestic sugar to ensure that the Philippines can fill up its share of the US Sugar Quota.

Administrator James Ledesma said the US quota is a long-term national interest of the Philippines and the sugar industry to satisfy the country's national commitment.

The Philippines had already shipped out the last shipment of 25,000 metric tons of "A" sugar to the United States.

Five other vessels had already been nominated or scheduled to arrive between March 2 to May 5. These will make deliveries close to 80 percent of the total US quota allocation, Ledesma said.

On December 9, 2005, the US trade representative granted the RP an additional quota of 50,099 metric tons. This raised the official total to 187,452 metric tons for Crop Year 2005-06.

The US, however, issued another quota of 30,000 to the Philippines last Feb. 22.

This was confirmed by the Philippines to the United States agriculture department that the Philippines will fill up both the regular and additional US quota of now 216,437 metric tons.

By banning the conversion through advanced swap of "A" to "B", available sugar produced for the current and previous crop years will just "be enough to fill up both our regular and additional quotas."

Meanwhile, Luis Tongoy, chair of the Confed Negros-Panay chapter, said the international sugar Organization predicted Wednesday that the world sugar demand for crop year 2005-2006 will exceed output 2.225 million tons. This revised its predicted deficit from 1.015 million tons. This makes the world trade balance extremely tight.

And that is the one that can boost the world market price of sugar, he said.

Also because of shortage from drought and the early rains in its sugar-producing areas, Brazil trimmed down its ethanol share in local gasoline from 25 to only 20 percent to make sure supplies are adequate during the inter-harvest period.

Other developments. Russian and Chinese buyers have taken foreign raws this month, while results are waited on Iran's raw tender last week.

Indonesia's Bulog is negotiating for better prices after thumbing down offers in a white tender last month.*RLE

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