Philippines’ sugar production in the second half continues to decline

The country’s sugar production for the current crop year has already surpassed the government’s full-year target, according to the Sugar Regulatory Administration.

Data from the Sugar Regulatory Administration (SRA) showed that sugar output reached 2.137 million metric tons as of the first week of July, slightly lower than the 2.14 million MT recorded in the same period last year. Despite the minimal decline, the country’s sugar output already exceeds the target for the current crop year. In March, the SRA adjusted its sugar production target for the current crop year to 2.1 million MT from its original goal of 2.19 million MT. The sugar crop year starts every September and ends in August. Apart from adjusting the annual production target, the SRA also terminated in March the seven percent export allocation to the US for the current crop year, which means 100 percent of the country’s sugar output will go to the domestic market. The SRA issued the amendment order due to the more severe than initially expected impact of La Niña, which brought heavy rains in all sugar producing regions, even flooding several sugar cane fields in Negros Occidental, particularly in Silay, EB Magalona, Victorias, Manapla and Cadiz.

Output in terms of 50-kilogram bags for the current crop year reached 42.7 million as of July 4, slightly lower than the 42.8 million in the same period a year ago. This brought the current raw sugar supply to 2.39 million MT. SRA data also showed that demand for raw sugar increased by 11.01 percent to 1.9 million MT. The total sugarcane milled also rose 8.26 percent to 25.2 million MT. Refined sugar production declined by 8.4 percent to 753,796 MT, while the mill gate price of sugar increased by 16.17 percent to P1,620 per 50-kilo bag. Last month, the SRA approved the “A” sugar export replenishment program for the current crop year in a bid to address the gap in domestic supply.

Under the program, exporters of the “A” sugar/quedans produced or issued in the current crop year and exported to the US sugar quota for the current crop year may import one 50-kilo bag if it exported one LKg/bag. In addition, those who exported one LKg/bag of refined sugar to the US may import 0.925 LKG-bag of refined sugar.