No need to import sugar – SRA

MANILA, Philippines - Nearing the end of the milling season, domestic sugar production is still sufficient to cover demand, the Sugar Regulatory Administration said yesterday.

SRA Administrator Ma. Regina Martin said there is no need for importation amid strong demand.

The milling season, which traditionally ends in August, is expected to close early, within three weeks.

She said domestic sugar consumption this year is expected to reach as much as 2.18 million metric tons for the current crop year. Production, meanwhile, is expected to reach as much 2.35 million MT for the current crop year.

“We are confident that we would hit, if not exceed our production target for this crop year,” said Martin.

The SRA has lowered production targets to 2.356 million MT for the current crop year from 2.45 million MT after Super Typhoon Yolanda demolished several sugar producing areas in the Visayas.

Martin said they are also reviewing the reallocation of 70,000 MT to 100,000 MT of unshipped world market sugar stocks to the local market to satisfy demand.

In February, the agency already reduced sugar exports to the world market to satisfy domestic demand and stabilize prices.

The world market sugar allocation was be slashed to just two percent of the total production from crop year 2013 to 2014 from the previous six percent, while domestic sugar allocation was increased to 96 percent from 92 percent.

Martin noted that sugarcane farmers continue to enjoy premium prices for their produce with prices of local sugar placed at $1,600 per 50-kilogram bag, compared to the $1,200/50-kg bag landed price of imported sugar.

The lower prices of world market sugar is attributable to surplus production in Thailand, India, Brazil and China.