Sugar production is expected to increase by at least 50,000 metric tons (MT) in crop year 2023-2024 with additional hectares of land planted with sugarcane, according to the Sugar Regulatory Administration (SRA).
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.
Pablo Azcona, SRA acting administrator, said at the Sustainable Agriculture Forum hosted by the European Chamber of Commerce of the Philippines in Makati City yesterday farmers were encouraged by the recent farm gate price of sugar.
But Azcona also cautioned sugar production could fall 10 to 15 percent if the effects of El Niño will be extreme.
“We’re coming from a good and stable price last year so we have seen an increase despite the loss of area in Batangas because of the closure of a sugar mill. We are facing a net increase of 3,000 hectares in area, we are expecting a 50,000 MT increase minimum, all depends on the forecasted El Niño severity which will come around November to January,” Azcona said.
“If it’s not so severe, we might even see an increase as this is in time with the harvest season as the drier weather brings out more bags of sugar per ton of sugarcane,” Azcona added.
The SRA said there are no plans to import more sugar.
SRA said out of the 440,000 MT allowed under Sugar Order (SO) 6, as much as 420,000 MT have arrived while for the 150,000 MT allowed for SO 7, only 30,000 MT have reached the Philippines.
“At this moment, which is the start of milling, we have very ample, two-month buffer stock that is surely there. Once we start milling, a month after, refineries will start running well, so we will have refined sugar supplies,” Azcona said.
Based on Department of Agriculture’s latest monitoring of public markets in the National Capital Region as of Wednesday, prevailing retail price of sugar ranges from P84 to P110 per kg for refined sugar, P80 to P95 per kg for washed sugar and P77 to P95 for brown sugar.
SRA millsite monitoring showed composite price of raw sugar as of July 2 before milling operations were terminated was at P3,000 per 50 kg bag.
