Sugar industry receives P314 million grant from Japan

MANILA, Philippines — The Philippines’ sugarcane industry has received a P314-million grant from the Japanese government as part of the farm mechanization program.

“(The grant is) very timely as we just started the new milling season and we in the industry are grateful to both the Japanese government and our own for this initiative that will go a long way in helping our sugar farmers become more efficient and productive,” said Sugar Regulatory Administration (SRA) administrator Pablo Azcona.

The grant is part of a 2021 agreement between the Department of Finance (DOF), the SRA and Japan.

Funded under the Japan Non-Project Grant Aid, 80 tractor units and other farm equipment will be provided. Of that number, 15 units will be deployed to sugarcane areas in Luzon, 51 units in the Visayas and 14 in Mindanao.

There will be 24 units sent to Negros Occidental in the Visayas, 11 in Negros Oriental, six in Iloilo, four in Leyte and three each in Cebu and Capiz. Also included are 48 sugarcane planters, 48 lateral flair mowers and five power harrows.

Under the 2021 deal, the SRA will own the farm machinery and implements. They will submit an impact assessment report to the DOF and Japan three years after the program’s implementation.

The farm machinery and implements will be consigned to select farmers’ groups for a fee proportional to maintenance costs to ensure the program’s sustainability.

No imports

The Philippines has a two-month buffer stock of sugar so there will be no sugar importation for the rest of the year, according to the SRA.

“There may be more, but the administration has two months or more buffer stock. We have a stable supply,” Azcona said in Filipino in a radio interview.

At least 550,000 metric tons of sugar were imported this year, including the controversial 400,000 MT awarded to three importers that were not approved by the SRA and 150,000 MT buffer stock.

For crop year 2023-2024 or from Sept. 1 to Aug. 30, 2024, the total sugar production will reach an estimated 1.85 million MT, according to SRA.

“The milling started on Sept. 1 as we delayed the start. Last year, it was August. We already saw the effect of delaying milling to Sept. 1, there is an increase in the yield,” Azcona noted.

He said the current weather is still favorable.

“What we are afraid of is in Negros, where majority of production comes from. The soil is a bit dry in November to January and then if there will be severe El Niño, the growing sugarcane for harvest may be sometime in March, April, May will be affected,” he added.

If the country will not experience severe El Niño, there would be a slight increase in sugar production, Azcona said.

In its Sugar Order No. 1 S-2023-2024, the SRA said sugar production is expected to be around 1.85 million MT, which shall be quedanned by mill companies as “B” or for the domestic market.

Despite a sugar oversupply, Azcona said retail prices remained high at P110 per kilo in supermarkets.

“As of now the prevailing price (in the markets) is P85 (per kilo) and then it is high in the supermarket at P110 (per kilo) depending on brand. Personally, I feel it’s a bit high, it should be P85 (per kilo) only. It (differs) on packaging and branding,” Azcona noted.

Consumers have complained of high sugar prices, which have refused to come down to the P50-P55 a kilo in 2021 despite several importations and harvests. – Bella Cariaso