SRA lowers sugar output forecast for current crop year to 1.831 MMT
THE Sugar Regulatory Administration (SRA) further lowered its raw sugar production estimate for the current crop year to 1.831 million metric tons (MMT) due to adverse effects of prolonged rains and sudden closure of Central Azucarera Don Pedro Inc. (CADPI) sugar mill in Batangas.
The latest estimate, disclosed by SRA board member Pablo Azcona to the media recently, is 2,000 MT lower than the agency’s pre-final crop estimate of 1.833 MMT.
If the latest production estimate materializes, then this will be the Philippines second-lowest raw sugar output in over two decades, based on historical SRA data. The country produced 1.82 MMT of raw sugar in the previous crop year, the lowest volume in at least 21 years.
Azcona explained that the further reduction in production estimates was attributed to impacts of prolonged rains in certain sugarcane plantations in the country.
He added that the closure of CADPI’S sugar mill was also factored in the SR A’s latest production estimate since the SR A board anticipates some sugarcane of displaced Batangas planters will be left unmilled at the end of the crop year.
The latest estimate by the SRA takes into account at least 50 percent of the harvested sugarcanes nationwide, Azcona explained.
“Batangas and Northern Cagayan have just started milling. We are studying the impact of extended rains and we are anticipating the problem [caused by closure of] CADPI’S [sugar mill] that some of their sugarcanes will not be milled,” he told reporters in an interview.
Azcona also disclosed that the lower raw sugar production forecast was considered by the SRA board in coming up with the final sugar import volume of 440,000 MT. (Related story: https://businessmirror. com.ph/2023/02/13/sra-boardokays-importationof-440000mt-of-refined-sugar/)
“We considered the production capacity, capacity to produce raw, we also considered the pending MAV [minimum access volume], we are studying the details and guidelines of the MAV, but we considered the volume,” he said.
“We also considered the possible impact of the closure of the CADPI. This was a sudden closure and we were not prepared for this. All of those were considered in coming up with the final volume,” he added.
Last month, the Businessmirror broke the story that CADPI, a subsidiary of Roxas Holdings Inc. (RHI), has permanently shut down its milling operations, raising concerns from sugar planters on where to mill their cane.