Sugar Regulatory Administration head James Ledesma has cautioned some sugar producers on their tendency of holding on to their "A" or US sugar quedan, speculating on the possibility of earning more from future transactions.

We either comply with our international commitment to fill up our share of the US sugar quota or we run the risk of losing out that privilege, Ledesma said.

Besides, he added, this was the reason why the SRA had imposed a deadline for the verification of "A" sugar and for banning the advanced swap of "A" to "B" sugar. Ledesma pointed out that he agreed to the additional 30,000 metric tons quota share of the Philippines after consultation with the sugar producers and the Sugar Alliance of the Philippines.

As of March 7, verification for the US shipment stood at 216,438 metric tons. This is still 74,465.73 metric tons below the obligated amount, Ledesma said.

So far, he added, five ships are scheduled to load from the Philippines the shipment for the United States.

Reports said that what was posing a problem was that speculators had entered the sugar trading, apparently in the hope that the advanced swap would be granted by the SRA and had expected that they would get the bonanza from the transaction.

This year was the only time when the "A" sugar price dropped below that of the domestic sugar millgate prices because of the sharp increase in the #11 price which boosted the sugar price to 22.25 cents per pound. This may have enticed sugar traders or speculators that domestic sugar will later give them added profits, reports said.

That also prompted the counter-trade sugar order which requires those importing sugar to be equipped with the export permit for sugar.

"The issue is very simple. I don't have any privilege to play favorites. What is just fair is for us to give those traders the chance to recover from their risk by importing the sugar through counter-trade," Ledesma stressed before sugar producers yesterday.

In short, we comply with our commitment or we must face the reality of losing on the long range basis our preferential trade on sugar with the United States, he added.*RLE

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