Sugar production down slightly in July

MANILA, Philippines — Local raw sugar production slightly declined last month to 2.07 million metric tons, but still within the target set by the Sugar Regulatory Administration.

While local sugar supply has met industry targets, it has not improved from year-ago levels.

Sugar crop year starts every September and ends in August.

Ending inventory stock is expected to reach 437,000 MT by the end of August.

Based on data on sugar production for crop year 2018-2019, output in terms of 50-kilogram bags hit 41.45 million compared to 41.61 million a year ago.

The country’s raw-sugar demand was also 17 percent lower at 1.82 million MT from the 2018 level of 2.2 million MT.

The total sugarcanes milled during the period hit 21.74 million MT, nine percent  lower than the previous year.

In terms of refined sugar, production decreased by 13 percent to 797,118 MT.

The Philippines has allocated bulk of its target production for the crop year for the domestic market.

Next crop year, raw sugar production is expected to continue to decline to less than two million MT alongside the increase in sugar consumption, thus the need to bring in more sugar imports.

Domestic food processing and beverage sectors will continue to expand, while consumers adjust to the increased sugar taxes.

Almost all sugar produced in the Philippines is consumed locally where roughly 50 percent of domestic consumption is accounted for by industrial users, 32 percent by households, and the remaining 18 percent by institutions.