SRA sees 8% hike in sugar output

The country’s sugar production for crop year (CY) 2006-2007 which starts in September is projected to be five to eight percent higher than the current crop year’s estimated yield of 2.04 million metric tons (MT).

Sugar Regulatory Administration (SRA) head James Ledesma said in an interview at the International Sugar Organization’s (ISO) International Sugar Development Forum, that farmers, encouraged by rising demand for sugar and improved sugar produces, are likely to increase their hectarage for CY 2006-2007.

"Based on ongoing milling activities, it looks like this year’s crop year yield is expected to be slightly higher at 2.04 million tons from the initial target of 2.01 million tons. With good weather, farmers can afford inputs and with favorable sugar prices, they take better care of their crops and would want to raise production, which should bring up yield by five to eight percent in crop year 2006-2007," said Ledesma

In the 2004-2005 CY, sugar production was up 2.15 million MT but was projected to decline to two million MT for 2005-2006 as most farmers were anticipated to reduce hectarage because of low farmgate prices and higher production inputs. Fertilizer prices rose to about P800-P850 per 20-kilogram bag, up from only P400-P450 two years ago.

On the other hand, lower farmgate prices of raw sugar which averaged just P850 per 50-kilogram bag last year, prompted sugarcane farmers to shift to other high-value crops such as such as corn, pineapple and bananas. On the other hand, production cost went up to P850 to P900 per kilo.

Earlier, Ledesma noted that in Bukidnon alone, about 10,000 hectares of cane area were converted to other crops such as pineapples and bananas, he said.

But as it turned out, the lower sugar output for 2005-2006 CY was good for farmers and prices now go as high as P1,250 per 50-kilo bag.

Ledesma said local production is sufficient to meet the domestic demand and with good prices, farmers are expected to go back to sugarcane farming and increase planting areas in the 2006-2007 cropyear.

He said that if the ethanol for fuel program takes off and new sugarcane areas are opened up, production will sustain its steady rise.

Ethanol production is being promoted by the government as an alternative biofuel and is seen to partly address surging prices of crude in the world market.