Target sugar output unlikely to be hit – SRA

THE target local production for raw sugar is unlikely to be attained this cropping year due to the impact of the El Niño weather disturbance, the Sugar Regulatory Administration (SRA) said.

SRA head Pablo Luis Azcona told reporters that as of January 15, the ongoing harvest reached a 60-percent completion or equivalent to 1 million metric tons (MT) of raw sugar.

“I don’t think we can hit 1.85 million MT the way it’s going now,” Azcona said. “What’s alarming also is a lot of our farmers and our progressive farmers are complaining of a lower yield this year due to the weather patterns.”

He added that some major sugar producing provinces are already experiencing dry spells due to the El Niño such as the South of Negros, which has been suffering drought in the last two to three months.

“In the Bukidnon area, some sugarcane are early maturing. So, most of our farmer friends here are recording a drop,” said Azcona.

The SRA official also said that millers have estimated total yield to reach 1.746 million MT once harvest is completed, but this is yet to be verified.

The cropping season for 20232024 is anticipated to conclude in May, possibly wrapping up sooner if the set target isn’t achieved, Azcona said.

Sugar Order 1 issued by the SRA in August last year stated that there will be an estimated drop in production of 10 percent to 15 percent depending on the severity of the anticipated El Niño phenomenon.

The SRA also said that there was a 20-percent drop seen in the local demand for sugar during the last months of 2023, which might have affected lower farmgate prices of the commodity.

“Actually, we’re thinking that the manufacturers are finding alternatives to sugar [and] if you look at it, demand for almost all of the commodities dropped,” said Azcona.

In relation to the declining farmgate price of raw sugar, which ranges between P2,400 and P2,500 per 50-kilogram bag, the government has given the green light for an initial funding of P5 billion to directly purchase sugar from farmers.

The Philippine International Trading Corp. will be the agency to directly purchase sugar from farmers while the SRA will be the conduit and will incorporate stakeholders’ suggestions and recommendations.