Sugar supply down 3% in January

MANILA, Philippines — Local raw sugar production continued to drop, reaching 877,000 metric tons (MT) as of end-January, barely two months after output started stabilizing in mid-November, the Sugar Regulatory Administration (SRA) said.

The current production was 3.2 percent lower than the 906,000 MT recorded in the same period in 2017. Sugar crop year starts every September and ends in August.

Based on data on sugar production for crop year 2017-2018, output in terms of 50-kilogram bags totalled to 17.5 million from 18.1 million in the comparative period.

The country’s raw-sugar demand was also 20 percent higher at 870,000 MT from the 2017 level of 715,000 MT.

The declining output prompted the SRA to cut its exports to the US and other markets and instead allocate more for domestic consumption.

The total sugarcanes milled during the period was 10.3 million MT, less than one percent lower than last year’s level.

The decline occurred even as more mills have started milling as of end-January, reaching 25 across Negros, Panay, Eastern Visayas and Mindanao, where more than 85 percent came from Negros region particularly Victorias.

In terms of refined sugar, production increased 12 percent to 298,000 MT, from 265,000 MT recorded in the same period in 2017.

On the other hand, sugar prices in the mill gate level remain in a downward trend as it declined 11 percent to P1,360 per 50-kg bag from P1,524 per 50-kg bag in 2017.

This, however, is an improvement from the P1,284 per 50-kg bag price recorded in the beginning of 2018.

Wholesale and retail prices for raw, washed, and refined sugar also saw lower prices.