Sugar output to reach 2.19-million tons for crop year 2009-2010

MANILA, Philippines - Sugar production for crop year 2009-2010 is expected to hit 2.19 million tons, according to Reynaldo P. Bantug, chairman of the Negros/Panay chapter of the Confederation of Sugar Producer’s Associations Inc.

The sugar crop year starts in September and ends in August of the following year. 

However, of the expected 2.19 million ton sugar production for crop year 2009-2010, Bantug explained that only 2.15 million ton will be raw sugar, while about 40,000 tons would be used for the production of ethanol.

In a talk with reporters, Bantug also said that domestic sugar prices are rising due to lower global production primarily by Brazil and India and higher international sugar price.

World market price for sugar, according to Bantug is up at 23 US cents a pound, while domestically, sugar in 50 kilogram bags sells at P1,350 in Negros. 

The higher sugar price, hopefully, Bantug said, would spur higher production. 

However, the sugar sector is still apprehensive over the influx of imported sugar from its ASEAN neighbors next year with the effectivity of the ASEAN Free Trade Agreement-Common Effective Preferential Tariff (AFTA-CEPT) scheme.

The sugar sector’s apprehension stems from the still unresolved tariff dispute between Thailand and the Philippines over maintaining a 38 percent tariff rate for sugar under the highly sensitive list protocol of the AFTA-CEPT for the period 2010 to 2014. 

While there had been some assurance from Thailand that it is agreeable to the Philippines’ request for sugar, the issue now appears to be part of a much tougher bargaining on a similar request for continued tariff protection for Philippine rice for which the Philippines also wants to maintain a tariff cover of 40 percent.

The sugar sector, Bantug admitted, particularly fears the influx of Thai sugar whose sugar production is more efficient than that of the Philippines and is subsidized by the Thai government in the form of loans. 

The Philippine sugar industry, on the other hand, Bantug pointed out, does not enjoy such subsidies and is thus relying on the government to successfully protect the sector through tariff walls.