THE National Federation of Sugarcane Planters (NFSP) expressed support to the Sugar Regulatory Administration move to allocate all domestic sugar production for the domestic market for crop year 2024 to 2025 as this would allow for “a more favorable price for producers.”
The SRA decision is contained in Sugar Order 1 issued and released on September 9.
“Our federation appreciates this move by the SRA allocating all domestic production for the domestic market, which traditionally brings a more favorable price for producers, compared to other classifications of sugar. We are hoping that the weather for the rest of the crop year will be favorable to give us an opportunity to recover the projected production shortfall,” said Enrique Rojas, NFSP president, in a statement on Tuesday.
Under SO 1, the SRA projects total raw sugar production for the current crop year at 1.78 million metric tons (MT) due to anticipated negative effects of the prolonged El Niňo phenomenon, unless the La Niňa phenomenon brings about an increase in production.
The agency said total domestic raw sugar withdrawal for the crop year is estimated at 2.2 million MT, implying a shortfall of more than 400,000 MT in terms of projected domestic production compared to demand.
SRA added allocating all local sugar production for domestic sugar demand will ensure stable prices at levels reasonably profitable to the producers and fair to consumers.
The SRA classifies domestic sugar production every start of the crop year, based on the volume and intended market.
“With the expected shortfall of domestic sugar production versus the estimated domestic demand, it is a good move on the part of the SRA to allocate all domestic sugar production as B sugar for the domestic market,” Rojas said.
