The Sugar Regulatory Administration (SRA) is optimistic about the prospects of the sugar industry in the face of possible decline in the output of major global producers.
Pablo Azcona, SRA administrator, said Thai Sugar Millers Corp. director Rangsit Hiangrat had indicated Thailand expects production to decline by 30 percent to its lowest in the last 10 years.
Azcona said India has declared it will not export sugar and would import close to a million tons this year.
With these developments, SRA expects sugar to yield better prices.
However, it said, reports indicated local trading in Negros Occidental last week dropped to a low of P2,550 to P2,700, with only two mills reporting trading at P3,000 at least.
The SRA said it is investigating possible trade manipulation.
“Since February, we have maintained prices at a comfortable level of P3,000 which is equivalent to P60 per kilogram at farm gate raw price and P85 per kilogram refined in retail price in Metro Manila. We have been pushing for P3,000 as the fair market price and this has been echoed by the administration. (This is) an incentive for farmers to plant more and be more sustainable,” Azcona said.
The SRA will focus the investigation on the mills, traders and importers for possible anomalous deals.
The current global situation is a “clear indicator” the local industry must be supported, and that the country should not depend on imports as the world production continues to decline, the SRA added.
The SRA had expected sugar production to increase by at least 50,000 metric tons (MT) in crop year 2023-2024 with more hectares of land planted with sugarcane.
Raw sugar production in 2022-2023 was down 1.6 percent to 1.79 million MT, from 1.82 million MT the previous crop year.
However, Azcona cautioned sugar production could fall by 10 to 15 percent if the effects of the El Niño will be extreme.
