MANILA, Philippines — Sugar stakeholders are urging the Department of Agriculture to maintain the status quo on sugar classification for the upcoming crop year.
The Asociación de Agricultores de La Carlota y Pontevedra Inc. (AALCPI) of Negros Occidental said the Sugar Regulatory Administration should retain the existing allocation implemented last year.
The SRA issues new sugar orders every end-August or the start of a new crop year which is September.
Based on the existing sugar order, 95 percent of the sugar production has been allocated for the domestic market, while the remaining five percent would go to the US market.
The SRA classifies sugar into “A” for sugar for export to the US, “B” for domestic consumption, “C” for reserves, “D” for export to countries other than the US and “E” for local food processors.
“The said percentage classification takes into consideration the present situation and the balance between ensuring sufficient domestic supply while maintaining the status quo of a readily available export market to the US,” said AALCPI president Roberto Cuenca.
“Although we like to have an all “B” classification, we cannot be assured of the demand at this time, so we have to maintain the balance,” he said.
The Philippines is one of the select countries given an annual allocation of sugar export to the US market at a premium.
Cuenca said the “A” sugar quota should be “without replenishment rights.”
This was in reference to the sugar order in the last crop year wherein SRA approved the importation of sugar as replacement for the US quota to address the gap in domestic supply.
He, however, wants the SRA to be on top of the situation and to make sure it has enough and accurate data to determine if that classification is viable as a new milling season starts.
Demand for sugar usually peaks by December in time for the holidays and the second peak is toward summer.
Latest data from the SRA showed that local raw-sugar production went up 3.54 percent to 2.15 million metric tons as of the last week of July. This is already above the target set by the SRA at 2.025 million MT.
Output in terms of 50-kilogram bags reached 47.86 million, higher than last year’s 46.16 million.
However, the country’s raw-sugar demand was slightly lower at 1.92 million MT from 1.93 million MT in 2019.
The total sugarcanes milled during the period was 23.3 million MT, up seven percent.