Sugar production in the current crop year may drop by as much as 100,000 metric tons (MT) as millers run out of bagasse to run their facilities.
Pablo Azcona, acting administrator of the Sugar Regulatory Administration (SRA), told reporters in an interview yesterday most millers have notified the agency they have ended milling operations.
Sugar crop year in the Philippines starts in September and ends in August the following year.
Azcona said raw sugar production in the country may drop by two to five percent in the current crop year which will result in a drop of around 100,000 MT for refined sugar production.
SRA said current refined sugar production of the country is at around 640,000 MT compared to last crop year’s 750,000 MT.
“It’s all because of the weather. If the rains are strong, farmers cannot harvest and there are no sugarcanes that are delivered to mills. You are consuming fuel but you’re not actually doing anything. Their estimates were short for the year as their fuel is bagasse which is also from sugarcane,” Azcona said.
The SRA said the agency is waiting for confirmation on the current sugar inventory before considering another round of refined sugar imports which may reach up to 150,000 MT.
“We want… imports to arrive by September 15 (so as) not to (coincide) with local production that will be available by end-September,” Azcona said.
