SRA upbeat on sugar output target despite drop in yield

Local sugar production is still expected to meet domestic demand and US quota despite the lower output for the crop year, the Sugar Regulatory Administration (SRA) said.

SRA administrator Hermenegildo Serafica is confident Philippine sugar production will meet its sugar production target of 2.27 million metric tons (MT). Sugar crop year starts every September and ends in August.

“We have the canes to mill but the problem besetting the industry at the moment is the scarcity of cane cutters. The canes have to be harvested and brought to the central for milling. That is why some mills may end much later in the crop year, around June or July, while others will start earlier to take advantage of the remaining canes,” Serafica said.

“Some planters are on their second crop of sugarcanes for the crop year. This translates to more available canes to be milled and additional supply for the market,” he added.

Just last month, the SRA Board decided not to import sugar for domestic consumption even if local raw-sugar production has been declining in the past few months.

Latest data showed that local raw-sugar production continued its decline, falling to 1.81 million metric tons (MT) as of April 22.

The current production is 10 percent lower than the two million MT recorded in the same period in 2017.

Based on data on sugar production for crop year 20172018, output in terms of 50-kilogram bags reached 36.19 million from 40.08 million.

The country’s raw-sugar demand was also 10 percent higher at 1.53 million MT.

The declining output prompted the SRA to cut down its exports to world market and allocate more for domestic consumption.

The total number of sugarcanes milled during the period was 20.75 million MT, six percent lower than last year’s 22.19 million MT.

In terms of refined sugar, production increased three percent to 691,000 MT.

On the other hand, sugar prices in the mill gate have started to improve, increasing by 30 percent to P1,638 per 50-kg bag.

Wholesale prices for raw, washed, and refined sugar slightly increased but retail prices of the commodity remained low.