Immigrating to the Philippines, one learns that the country is one of the major sugar producers in Southeast Asia and a key sugar exporter to the United States. However, due to poor weather conditions this year, sugarcane cultivation in the Philippines' main sugar-producing regions has been affected. To meet domestic market demand, the Sugar Regulatory Administration (SRA) of the Philippines indicated in August that it might halt sugar exports. Recently, the SRA announced that in 2016, the Philippines will import raw sugar for the first time in six years, with the import volume expected to reach 169,385 tons.
The Philippines' increase in sugar imports will provide support for global sugar prices. The market expects a global sugar supply deficit for the 2015/16 season. Imports will be partially used for exports. Bautista-Martin stated that the Philippines has already signed an agreement to export 135,508 tons of raw sugar to the United States next year. The U.S. procurement is conducted under the tariff-rate quota system.
The Philippines is the world's eighth-largest sugarcane producer and the third-largest recipient of the U.S. sugar quota, with an annual quota of 135,508 tons.
In August, the SRA stated that all raw sugar produced domestically in the 2015/16 season would be allocated to the domestic market. The SRA lowered its forecast for domestic raw sugar production for the 2015/16 season from 2.27 million tons to 2.228 million tons, which is only enough to meet the domestic consumption of 2.25 million tons.