Sugar millers in the Philippines are open to allocating all sugar production for domestic consumption in the next crop year, citing the potential impact of the El Niño weather phenomenon on sugarcane yields, reports Philippine Star.
In a statement released, the Philippine Sugar Millers Association (PSMA) said, “Regarding the 100 percent Quedan B domestic allocation for the upcoming season, this may be justified considering the prolonged effects of the El Niño phenomenon.”
“The full impact of El Niño on the next crop season, which begins on September 1, 2024, is still being assessed by the Sugar Regulatory Administration (SRA). The SRA is currently reviewing its pre-milling estimates for Crop Year 2024-2025,” PSMA further added.
Pablo Luis Azcona, the SRA administrator and CEO, previously indicated that the SRA board is inclined to allocate all sugar output for domestic consumption next crop year, as production is expected to fall short of meeting overall demand.
Each year, the SRA board issues an order determining how local raw sugar production will be allocated and sold, based on supply and demand analysis. The board can classify raw sugar into different categories: A for export to the US market, B for domestic consumption, C for reserved sugar, and D for export to the world market.
The PSMA also stated that it would collaborate with the government to facilitate exports to the US market if local sugar yields exceed initial projections, as occurred in the current crop year.
The PSMA also acknowledged the potential benefits of a proposed two-week delay in the start of the milling season, as suggested by some industry groups, particularly sugarcane planters. “PSMA recognizes the possible advantages of delaying milling to allow for better cane maturity and potentially higher yields, especially in light of El Niño,” the association said.
