April 4, 2019
Jasper Y. Arcalas (Business Mirror) | https://bit.ly/2UKWlui
The country’s sugar output as of mid-March expanded by 14.48 percent year-on-year to 1.662 million metric tons (MMT), according to the latest data from the Sugar Regulatory Administration (SRA).
SRA data published on April 1 showed that raw sugar output in the current crop year (CY) 2018-2019 is already 211,000 MT over the 1.45 MMT recorded in the same period in the previous crop year.
Figures from the SRA indicated that the higher output may have been driven by higher volume and better-quality sugarcane milled from September 1 to March 17.
During the reference period, sugarcanes milled reached 17.732 million MT, higher than the previous year’s 16.836 MMT.
Also, the sugar-milling recovery rate as of March 17 rose by 8 percent to 1.89 50-kilogram bags per ton cane (LKg/TC), from 1.75 LKG/TC a year ago.
Total raw sugar demand as of March 17 declined by 17.70 percent to 1.002 MMT, from 1.218 MMT a year ago, SRA data showed.
Domestic withdrawals fell by 2.49 percent to 967,188 MT from 991,920 MT recorded in the same period of 2018.
SRA data also showed that refined sugar output grew by 3.46 percent to 28,048.66 MT from 27,110.21 MMT.
Millsite prices of raw sugar declined by 4.72 percent to 1,451.31 per LKG from 1,523.16 per LKG in the previous year.
Earlier, the Philippine Sugar Millers Association (PSMA) told the BusinessMirror that production in the current crop year is on track to hit the SRA’s forecast of 2.08 MMT as data shows higher sugarcane delivery and higher sugar content.
The current crop year, which would end on August 31, is currently at the tail end of the milling season and would soon enter off-season.
Confederation of Sugar Producers Association earlier urged the SRA to increase local sugar supply by prioritizing the domestic market over the United States, as El Niño could cut sugarcane output in the current crop year.
The SRA earlier revised its output projection to 2.079 MMT, from 2.225 MMT due to bad weather in some sugarcane-producing provinces. The forecast is slightly lower than the 2.08 MMT produced in crop year 2017-2018.
The decline in the country’s sugar output in CY 2017-2018 was attributed to “unfavorable weather conditions,” particularly the increase in rainfall over some sugar-producing provinces. Rains affect the yield of sugarcane, as wet canes have lower sugar content.