Sugar output seen to hit 2.45-million MT

MANILA, Philippines - The Sugar Regulatory Administration (SRA) estimates sugar prodution for crop year 2013-2014 to reach 2.45 million metric tons (MT) , same as the actual production in the recently concluded  crop year.

Final sugar production for crop year 2012-2013 reached 2.457 million MT,  9.5 percent higher than the previous crop year.

Sugar Order No. 1 issued yesterday (Aug. 30) stipulates that 86 percent of the production would be allocated to the domestic market, 12 percent for export to the world market, and two percent for the US export quota.

SRA administrator Ma. Regina Martin said that to support the diversification efforts of the Philippine sugarcane industry, the eventual use of world market sugar or ”D” sugar – for bioethanol production would be encouraged.

“Price situation in the world market remains volatile and the bioethanol mandate could very well absorb the surplus sugar at viable price levels,” she said.

As of Aug. 2, actual shipment to the world market is around 140,000 MT.

Allocation for “A” sugar or US sugar quota will be minimal this year taking into condideration the 57,000 MT that was not shipped in the current crop year that just closed.

The Philippines has a regular US sugar export quota of 138,000 MT. Only 53,690 metric tons were shipped to the US, however, because of depressed prices caused by oversupply in the mainland and unlimited access of Mexican sugar.

To address this, the SRA allowed the swapping of unshipped “A” sugar to “D” sugar but there is still a considerable overhang.

“The US market continues to be a reliable market and remains an instrument to stabilize domestic sugar supply that its allocation is imperative regardless of volume,” said Martin in the order.