MANILA, Philippines - The Sugar Regulatory Administration (SRA) has diverted sugar allocation for the world market to domestic use as production for the current crop year is expected to fall below target.
SRA administrator Ma. Regina Martin said rains that prevailed at the start of the sugar milling season in September affected the maturity of canes in the Visayas region, causing a production shortfall in major sugar-producing regions in the country.
As such, sugar production for crop year 2014-2015 is expected to reach only 2.465 million metric tons (MT), down from the initial projection of 2.50 million MT at the start of the milling season.
The SRA is diverting the five percent world market or “D” sugar allocation to the domestic market to protect local supply and prevent price spikes.
In a sugar order dated March 12, the SRA amended this crop year’s allocation to state that 95 percent of the production would be used for the domestic market while only five percent would remain as US quota sugar or “A” sugar.
In the order, the SRA said the country still has sufficient sugar stocks to meet shipment commitments to the world market.
Martin said the country has already begun shipping to the US to fulfill its annual sugar quota of over 138,000 MT.
The first vessel carrying 29,800 MT of raw sugar departed for the US on March 8 while the second shipment of 30,000 MT is scheduled for departure between late March and early April.
In February, Martin said that aside from the persistent rains, cane growers in Visayas — mostly in Negros province — suffer from lack of cane cutters and haulers.
Negros province traditionally produces half of the country’s sugar supply.