WITH OUTPUT SEEN LOWER THAN ESTIMATES

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    SRA orders all sugar production converted for domestic use

    The Sugar Regulatory Administration (SRA) has issued an order converting the classification of sugar intended for the US market to domestic use.

    Sugar Order No. 1 series of 2020-2021 released on Monday covers sugar production of the week ending April 4, 2021 and subsequent week endings of crop year 2020-2021.

    Sugar crop year begins on September 1 and ends August 31 of the following year.

    SRA said from the 2.19 million metric tons (MT) initial estimates, the country’s sugar output for the current crop year is seen to hit 2.101 million MT.

    “La Niña was more severe than initially expected that it brought heavy rains in all sugar producing regions even flooding in several sugarcane fields in Negros Occidental in particular, Silay, EB Magalona, Victorias, Manapla and Cadiz and from the latest report of Pagasa (Philippine Atmospheric, Geophysical and Astronomical Services Administration), La Niña is expected to last longer than previously reported,” the order said.

    SRA said due to La Niña, the sugar content in cane determined through 50-kilo bag sugar per ton cane (LKg per TC) is substantially lower at 1.71 LKg per TC actual national average as of March 14 compared with the 1.87 LKg per TC estimated national average for the crop year during the pre-milling estimates.

    “The drop in LKg per TC eclipsed the increase in sugarcane tonnage this crop year which is higher by 8 percent as of March 7 from tonnage for the same week-ending last crop year,” SRA said.

    The United States Department of Agriculture also projected sugar output in the Philippines to hit 2.19 million MT production for crop year 2020-2021 but warned La Niña could moderately lower the production that may result in higher tonnage of sugar canes but lower in sugar content.

    The country recorded 2.07 million MT for crop year 2018-2019 and 2.15 million MT for 2019-2020.