Sugar regulator sees rise in production assuming mild El Niño
SUGAR production in 2023 is expected to rise slightly, on the assumption that the impact of El Niño isn’t too severe, the Sugar Regulatory Administration (SRA) said.
At an agriculture forum organized by the European Chamber of Commerce on Thursday, SRA Administrator Pablo Luis S. Azcona said sugar production could increase by 50 thousand metric tons (MT).
Mr. Azcona added that the total area planted to sugarcane is estimated to rise by at least 3,000 hectares.
“We have a slight increase in area despite the fact that (output fell) in Batangas because of the closure of the mill,” he said.
In the last crop year, sugar production declined to about 1.8 million MT from the 2.1 million MT previously, due to a number of typhoons affecting cane production, he said.
“For the initial balance of inventory for this crop year, locally produced sugar posted a 450% increase (from a year earlier), he added.
To date, the stock of domestic sugar is at 150 thousand MT, against 27 thousand MT a year earlier.
“With the harvest season having begun, we will see an increase in raw sugar stock,” he said.
The sugar crop season typically begins in September.
A severe El Niño, however, could result in a 10% to 15% decline in output.
“(It) all depends on the El Niño’s severity.” Mr. Azcona said, with the worst of the weather phenomenon, which can cause dry spells, expected to manifest starting around November.
The government weather service expects El Niño to strengthen towards late 2021, persisting until the first quarter of 2024.
“If it’s not so severe, we might even see an increase (because of the timing of) harvest season. Drier weather results in more bags of sugar per ton of sugarcane,” he added. — Adrian H. Halili
