Allocation for domestic sugar use reduced to 92% of output

The Philippines has reduced sugar allocation for the domestic market to 92 percent of total sugar production for crop year 2016-2017, the Sugar Regulatory Administration (SRA) said.

Based on its latest sugar policy, SRA administrator Ma. Regina Martin said the remaining eight percent of the total sugar production would be for the US market.

This was contrary to the previous commitment of 100 percent for the domestic market for the previous crop year that ended last month due to the dry spell brought about by the El Niño phenomenon.

“The US market continues to be a reliable market and remains an instrument to stabilize domestic sugar supply that its allocation is imperative regardless of volume,” SRA said.

The Philippines is one of the select countries given an annual allocation of sugar export to the US market at a premium.

For this crop year, Manila has a regular US sugar quota of around 138,000 metric tons from 135,508 metric tons during the previous crop year.

For the incoming crop year that started this month and will end in August 2017, the Philippines expects to produce 2.25 million metric tons of sugar.

According to the SRA, this production level is sufficient to cover the estimated domestic demand of 2.15 million MT.

SRA policy and planning manager Rosemarie Gumera earlier said they were looking at better sugar production this year with ample rainfall in major sugar producing regions as a result of La Niña.

The country’s sugarcane industry just came out of a challenging year with production falling short of targets due to El Niño.

This resulted in tightness in domestic supply, forcing the government to allow importation of sugar last cropping season to meet domestic requirements and replace its export commitment to the US as drought hit major sugarcane producing provinces.