Sugar output hits target

MANILA, Philippines — Local sugar output has already reached its total production target for the current crop year with  a total of 2.1 million metric tons  produced in  the first week of June, according to the Sugar Regulatory Administration (SRA).

Data from the SRA showed a meager increase of 0.53 percent from the 2.098 million MT registered in the same period last year.

The sugar crop year starts every September and ends in August.

In March, the SRA adjusted its sugar production target for the current crop year to 2.1 million MT from its earlier target of 2.19 million MT.

It also terminated the seven percent export allocation to the US for the current crop year, which means 100 percent of the country’s sugar output for the year 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 42.19 million as of June 6, slightly higher than the 41.97 million in the same period a year ago.

This brought the current raw sugar supply to 2.36 million MT, higher than the 2.35 million MT in the same period in the previous crop year.

SRA data also showed that demand for raw sugar increased by 11.06 percent to 1.73 million MT. The total sugarcane milled also rose 8.89 percent to 24.8 million MT.

Refined sugar production declined by 6.61 percent to 712,952 MT while the mill gate price of sugar increased by 2.39 percent to P1,622 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 (LKg-bag) if it exported one LKg-bag.

In addition, those who exported 1 LKg-bag of refined sugar to the US,  may import 0.925 LKG-bag of refined sugar.