MANILA: The Sugar Regulatory Administration (SRA) on Tuesday said it expects Philippines sugar output to rise by at least 50,000 metric tons (MT) to reach about 1.8 million MT in crop year 2023-2024, despite the closure of a major Batangas sugar mill and the impact of the El Niño phenomenon, reported Business.inquirer.
SRA Administrator Pablo Luis Azcona said the estimates are “very preliminary” based on the area planted and the average production in the previous year.
For the crop year 2022-2023, sugar production stood at 1.799 million MT.
Azcona, speaking at the European Chamber of Commerce of the Philippines’ 2023 Sustainable Agriculture Forum, indicated that the impact of El Niño on sugar production may not be detrimental.
Despite the closure of the Central Azucarera Don Pedro Inc. (Cadpi) sugar mill in Batangas, Azcona noted an overall increase in sugar production. Cadpi, a subsidiary of Roxas Holdings Inc., ceased operations permanently in December of the previous year due to financial challenges, aging plant equipment, and a significant decline in sugarcane supply.
However, Azcona cautioned that if El Niño’s effect on the industry is severe, there could be a 10 to 15 percent reduction in sugar output. He mentioned that the Philippines Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) has forecasted El Niño conditions from November to January, which aligns with the dry season in Negros. Severe El Niño could impact growing sugarcane, as the harvest season spans approximately six to eight months.
In terms of sugar supply, Azcona assured that the country will not face any constraints in the upcoming crop year, thanks to a robust buffer stock.
Azcona also pointed out that typhoons in the previous crop year had disrupted sugarcane production, necessitating two importation programs to address supply shortages. The first program, Sugar Order No. 6, involved importing 440,000 MT of refined sugar, with 200,000 MT allocated to customers and the remaining 240,000 MT intended to bolster the buffer stock. To date, 420,000 MT of refined sugar have been imported under this program.
The second importation initiative, covered by Sugar Order No. 7, consisted of 150,000 MT of refined sugar aimed at stabilizing prices and fortifying the country’s sugar reserves. Thus far, 30,000 MT of refined sugar have arrived in the Philippines, with more expected to follow suit.
