Sugar production falls over 27% as of early Dec.

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sugar wet market

THE Sugar Regulatory Administration (SRA) said sugar production as of the first week of December fell 27.48% year-on-year.

The agency reported that in the first week of December, sugar production was 311,617 metric tons (MT), down from 429,680 MT the previous year. This is equivalent to 6.232 million 50-kilo bags.

The crop year for sugar starts every September and ends in August.

Demand for raw sugar declined 6.13% to 343,597 MT.

Total sugarcane milled decreased 24.27% year-on-year to 3.712 million MT.

Refined sugar production fell 29.90% year-on-year to 110,654 MT, equivalent to 2.213 million 50-kilo bags.

The millgate price rose 3.47% year-on-year to P1,514 per 50-kilo bag, while retail prices ranged from P45 to P50 per kilo, down from P54 to P62.

The SRA target is to produce 2.096 million MT of sugar this crop year, down 5% from the previous year’s target due to unfavorable weather, reduced land area planted to sugarcane, and a shift to planting other crops.

Fitch Solutions Macro Research said sugar production in the Philippines for the crop year is expected to decline to 2.1 million MT, downgrading its previous projection of 2.2 million MT, citing labor shortages and rising competition from cheaper imported sugar. — Vincent Mariel P. Galang