Sugar production for the current crop year has exceeded target as of July, and is poised to grow further in the next crop year amid lower demand.
The Sugar Regulatory Administration (SRA) data showed output for crop year 2019-2020 has exceeded the 2.1 million metric tons (MMT) target as of July 5, reaching 2,392,340 MT.
Roland Beltran, SRA board member representing millers, said demand this year is lower compared to last year due to the pandemic when industrial use of sugar significantly declined.
“The weather was good beyond expectations,” Beltran said, adding logistical restrictions during the quarantine did not hamper operations of industry, one of those identified as essential.
The SRA statistics debunks the prediction of the United States Department of Agriculture which said Philippines’ sugar production for the current crop year may fall to 2.02 MMT.
“There (we)re unforeseen events not factored in when the forecast was made. The climate alone is so unpredictable ,” said Beltran who expressed optimism the upward trend in production will continue next crop year despite the pandemic.
Sugar crop year in the Philippines starts September and ends August the following year.
Meanwhile, the Philippine Sugar Millers Association (PSMA) urged government to ease the requirements on an incentive program for sugar farmers under the Sugar Industry Development Act (SIDA).
SIDA has set an initial aggregate amount of P2 billion starting 2016 for the modernization of the sugar industry. The incentives include block farms grants, research and development, socialized credit, scholarship grants and infrastructure.
But the budget had been slashed due to low takeup arising from tedious procedures.
The group said the government should emulate an assistance program granted by the Thai government to its 300,000 sugarcane growers with a 10 billion baht (P15.7 billion) aid package.
“Under this latest assistance program, a Thai sugarcane farmer receives an initial payment for the delivered canes plus 85 baht as government assistance, an additional 95 baht if delivered canes are unburnt and at close of the milling season, the difference between the initial cane price and the value of its sugar,” said Cocoy Barrera, PSMA’s executive director.
