SRA: Slight increase in sugar prices seen

CEBU, Philippines - A slight increase in sugar prices is anticipated in the following days as the Sugar Regulatory Administration reported that sugar production has dropped by eight percent owing to the prolonged El Niño phenomenon.

SRA Planning Officer Rosemarie Gumera told The Freeman in an emailed interview that production of sugar is down by eight percent for the annual cropping season from September 1, 2015 to August 31, 2016 due to the unfavorable weather conditions that affected major sugarcane plantations.

Sugar mills in Cebu, particularly in Bogo, also reported a decline in production due to the extended drought.

"Tungod sa kainit, mi-decrease ang among supply kay uga kaayo ang katubohan,” said Emma Balagtas, President's Secretary of Bogo Medellin Company Inc.

Gumera however said that the estimated volume of 2.13 to 2.15 million metric tons (MT) of sugar plus the beginning stocks is still enough for domestic requirements.

She further said that, "In terms of sugar supply, Cebu has nothing to worry about because it is the distribution center of sugar in the Visayas," wherein sugar shipments from Negros are brought to Cebu for delivery to other provinces.

Although sugar shortage is still unlikely, but since sugarcane plantations in Negros Occidental were also hit hard by the dry spell, a slight increase in the prices of refined sugar has already been felt in the market.

SRA earlier reported that losses for sugarcane and molasses in Negros Occidental already reached P182 million because of El Niño. As of April 26, estimated yield loss in sugar reached 92,230.27 kilograms with a valued of P167.74 million while for molasses, 1,532.95 tons, totaling P23.93 million.

The losses affected 9,799 farmers, with total sugarcane area of about 9,800 hectares, the SRA report added.

To date, while the price of brown sugar has remained at P1,980 per sack or P42 per kilo, the price of refined sugar on the other hand posted a three percent increase, from P2,280 per sack to P2,350 per sack. Per kilo price of refined sugar has gone up by P2, from P50 per kilo to P52 per kilo.

Sidewalk vendors in Cebu, who normally purchase sugar for their business, said that prices of sugar have indeed increased.

Lucy Alcontin, 49, a banana cue vendor, can use up around six kilos of brown sugar and around three kilos of refined sugar every day.

However, she said that since the increase is so minimal that she opted not to increase the price of her banana cue. Alcontin added that sugar is very important to her business because without it, “Importante gyod kay dili mahalin ang akong saging kon walay kamay.”

Same goes with Nenita Caballes, 47, a local vendor who sells shakes down the street. She uses at least five kilos of refined sugar every day.

Caballes said that due to the price increase of sugar, instead of increasing the price of her shakes, she decided to reduce the servings to make up for the price difference.

For each P10 serving of shakes, she adjusted the serving from 7oz to 6oz of disposable cups, and for the P5 serving, she uses the 3oz cups.

Meanwhile, since the farmers are the ones who are greatly affected by the drought, which has resulted to lower harvest, SRA has extend their help to the farmers by collaborating with the Bureau of Soils and Water Management (BSWM), the Department of Agriculture (DA) and the local government for the cloud seeding operations.

By this, it would help farmers overcome the effect of the drought especially for the next cropping season, Gumera said. (FREEMAN)