Philippine raw-sugar output in the current crop year (CY) has reached 1.584 million metric tons (MMT) as of April 1, 11.3 percent lower than the 1.786 MMT recorded a year ago, the latest data from the Sugar Regulatory Administration (SRA) showed.
Preliminary data released by the SRA showed that raw-sugar production from September 1, 2017 to April 1 amounted to 31.869 million 50-kilogram bags (Lkg), from 35.75 million Lkg posted in the previous crop year.
During the reference period, the country’s total raw-sugar demand reached 1.333 MMT, 8.44 percent higher than the 1.229 MMT recorded a year ago. Of the total raw-sugar demand, 82.22 percent, or 1.096 MMT, was for domestic consumption. The figure is 4.37 percent lower than the 1.146 MMT recorded during the same period last year.
The government-owned and -controlled corporation attached to the Department of Agriculture estimated local sugar demand for the current CY, which will end on August 31, at 2.17 MMT.
Refined sugar production during the period expanded by 5.04 percent to 601,077.5 MT, from 572,234.05 MT recorded during the week ending April 2, 2017.
Demand for refined sugar for the current CY was pegged at 631,341.85 MT, 23.53 percent higher than last year’s 511,072.55 MT.
The volume of sugarcane milled during the week ending April 1 reached 18.274 MMT, 7.88 percent lower than the 19.838 MMT recorded last year.
Milling recovery rate in the current CY to date was pegged at 1.75 Lkg per MT, 3.85 percent lower than the previous year’s 1.82 Lkg per MT.
The SRA estimated that total sugar output in CY 2017-2018 would reach 2.27 MMT.
A Global Agricultural Information Network (Gain) report prepared by the Foreign Agricultural Service of the United States Department of Agriculture in Manila disclosed that Philippine raw-sugar output would post flat growth in marketing year (MY) 2018-2019.
The report also noted that the demand for sugar would remain unchanged due to the implementation of the Tax Reform for Acceleration and Inclusion law, which slapped higher taxes on the sweetener.
The Gain report revealed that the country’s sugar production would settle at 2.3 MMT in MY 2018-2019, which would begin on December 1. Sugar consumption would still be at 2.25 MMT, the report noted, as sugar-sweetened beverages become more expensive.
For MY 2017-2018, the Gain report projected that total raw-sugar output would decline by 8 percent to 2.3 MMT, from a record-high of 2.5 MMT posted in MY 2016-2017.
“The drop in sugar production is mostly attributed to unfavorable weather conditions, particularly during the vegetative or growth stage in many sugarcane-producing provinces, which should affect sugar content and weight of cane,” the report read.
The report noted that about 80 percent of total sugar produced in the Philippines is consumed locally, while the remaining volume is exported.