The Sugar Regulatory Administration (SRA), which oversees the Philippines’ sugar industry, is planning to temporarily halt sugar exports over the next 12 months as production is projected to fall further due to expected weather disruptions.
The raw sugar production estimate for the crop year 2021-2022 has been put at 2.09 million metric tons (MT) based on SRA’s official management recommendations for Sugar Order (SO) 1, which is lower than the estimate of 2.10 million MT the country was aiming to generate for the crop year 2020-2021.
As such, SRA is now bent on temporarily suspending the exportation of sugar to the United States and the World Market over the next 12 months.
“Based on the PAGASA rainfall forecast, above-normal rainfall condition is expected for the months of October 2021 to January 2022 over Batangas and Negros Island. While a slightly above normal rainfall on December 2021 to January 2022,” the draft of SO 1 read.
“The Raw Sugar Supply and Demand of SRA-Regulation Projection Department shows that even with a carry-over volume of 158,557 MT domestic sugar, the country’s sugar supply situation is better served with an all ‘B’ domestic sugar allocation for this crop year,” it added.
A sugar crop year in the Philippines runs from September to August. SRA is required to disclose its official output projection and sugar production allocation at the start of each crop year.
The Philippines’ sugar production is divided into different classifications, including ‘B’ for domestic sugar, ‘A’ for sugar exports to the US, ‘D’ for sugar exports to the world market or other countries, and ‘C’ for reserves.
Last week, the United Sugar Producers Federation (UNIFED) urged SRA to scrap the A sugar or the US sugar quota for the coming crop year, especially if the supply is just enough for the country’s consumption.
This developed as some players in the sugar industry are lobbying for a 7 to 8 percent allocation for A sugar, sources said.