CAPD permanent closure looms

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The Sugar Regulatory Administration (SRA) said Luzon will soon lose its sugar refining capacity with the scheduled permanent closure of Central Azucarera Don Pedro Inc. (CADP) in Batangas.

In a statement, Pablo Azcona, SRA administrator, said the company has yet to issue a formal notification but the information has been relayed by Luzon Federation (LuzonFed), the group of sugar producers in the island.

Azcona said workers will be laid off sometime next month.

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“Sad effect is the loss of employment and secondly, the loss of refining capacity for Luzon. So now, premium refined will come from four mills in Negros and one in Bukidnon,” Azcona added.

Earlier, the SRA said it may lower its earlier projection of 1.85 million metric tons (MT) local production for crop year 2023-2024 to 1.75 million MT due to El Niño.

Azcona said then that El Niño may pull down sugar output by 10 to 15 percent.

Last October, the United States Department of Agriculture lowered its projected raw sugar production in the Philippines for the current crop year by 5 percent to 1.8 million MT from an earlier forecast of 1.9 million MT.

Actual sugar production in the Philippines in the previous crop year was at 1.79 million MT.

Based on Department of Agriculture’s monitoring of public markets in the National Capital Region, prevailing retail price as of yesterday ranges from P72 to P100 per kg for refined sugar, P68 to P86 per kg for washed sugar and P65 to P90 per kg for brown sugar.

SRA millsite monitoring showed composite price of raw sugar as of February 11 was at P2,538.87 per 50 kg bag.

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