Slower decline in sugar output seen
Domestic sugar production may decline at a slower pace than previously projected this crop year because of improved harvest conditions, according to the Sugar Regulatory Administration (SRA).
The SRA adjusted its local sugar output forecast to 1.837 million metric tons (MT) for crop year 2024 to 2025, up by 3.1 percent from its initial projection of 1.782 million MT.
However, the revised estimate will still represent a 4.3-percent drop from the actual production volume of 1.92 million MT recorded in crop year 2023 to 2024.
In the Philippines, the sugar crop year begins every September and ends in August of the following year.
The SRA previously lowered its sugar output projection to price for the negative effect of El Niño phenomenon on local harvests.
However, the SRA revised its outlook because of the higher sugarcane tonnage per hectare planted amid lower sugar producer per ton of cane (LKGTC).
LKGTC measures the sugar yield or the amount of raw sugar produced from one metric ton of sugarcane.
So far this crop year, the country produced 1.815 million MT of raw sugar as of May 2, down by 5.4 percent from the same period a year ago, data from the SRA showed.
SRA Administrator Pablo Luis Azcona said the efforts of the SRA to stabilize sugar prices since 2022 have encouraged farmers to plant sugarcane despite the steep cost.
“Fair farm-gate prices encouraged farmers to risk replanting their El Niño-damaged canes, using new SRA varieties as they were hopeful that prices would eventually make up for the very high cost of production,” Azcona said on Monday.
The SRA noted that sugar prices at the mill-site level reached P2,671.92 per 50-kilogram bag, up by 6.8 percent from P2,502.66 per bag.
Azcona also said the improved forecast was due to the government’s move to prioritize research through development and propagate new SRA sugarcane varieties, along with improving soil condition and irrigation. Changing the sugarcane cropping calendar to better suit the climate was also cited.
“We hope next milling, we will get [better] tonnage and most importantly, more sugar per ton of cane (LKGTC),” he added.
So far, Mindanao recorded the highest average LKGTC at 1.74 while Negros is averaging 1.65 as well as Panay and Luzon at 1.54.
According to the SRA, Visayas comprised 71 percent of total production, with Negros Island accounting for 63 percent. Mindanao accounted for almost 24 percent.
Panay came next with 6.3 percent, Luzon with 5 percent, and the remainder from Cebu and Leyte.
