SRA maintains Phl sugar outlook
THE Sugar Regulatory Administration (SRA) maintains its Crop Year (CY) 2012/13 sugar production forecasts at 2.356 million metric tons. According to Ma. Regina Bautista-Martin, SRA Administrator the Philippines remained resilient despite the effects of Typhoons Pablo and Quinta that hit Mindanao and Visayas sugar-producing areas.
As of week ending December 16, 2012, sugar production for the current CY has already reached 872,978.87 MT, or 37.048% of the forecast production. This is 27.19% higher than than last year for the same period.
The increase in production is attributed to early milling, higher rate of crushing, and favorable weather condition in the last quarter of the 2012. On the other hand, based on SRA records, sugar withdrawals for domestic demand has been higher compared to last year’s level, at 28.61% for raw sugar and 22.80% for refined sugar.
SRA is expecting a strong sugar demand for 2013 due to stable sugar prices and the mid-term elections in May 2013.
Administrator Martin is also confident that the Philippine sugar will continue to be a dollar earner of the country as it continues to export to the US and other markets. Shipments under the US Quota program will start this January 2013, while exports to the world had already reached more than 20,000 metric tons.
World sugar supply is expected to have a surplus due to favorable crushing and weather conditions in some of the major sugar producing countries such as Brazil, India and Thailand. This will have pressure on sugar prices, but the SRA is hopeful that domestic prices will continue to be stable, as shown in price movements over the past months.
“The need to increase productivity and reduce cost of production is even more imperative now!”, according to Martin. “With import tariffs at 18% starting January 1, 2013, we need to be vigilant in assessing the impact of world market situation on local prices,” Martin added.