USDA expects Philippine sugar production to decline

The Philippines’ sugar production will likely go down in the 2024 crop year, mainly due to the effects of El Niño phenomenon, according to the United States Department of Agriculture (USDA).

In its report, the USDA said the country’s raw sugar production may decline to 1.8 million metric tons (MT), which is 100,000 MT lower than its earlier projection of 1.9 million MT.

The American agricultural agency’s projection is lower, but still close to the Sugar Regulatory Administration’s (SRA) forecast of 1.85 M metric tons for Crop Year 2023-2024, equivalent to an estimated drop of 10% to 15%.

Similar to what the SRA cited as a factor, the USDA explained that the expected raw sugar decline was attributed to the ongoing El Niño phenomenon.

Moreover, the American agricultural agency cited declining sugarcane planting areas and weather disturbances as factors that could affect sugar production in the Philippines.

In anticipation of lower production, the SRA assigned all raw sugar output for domestic consumption.

The USDA is expecting that the Philippines will not import raw sugar in a bid to protect producers, however, it said refined sugar importation amounting 240,000 MT could be necessitated to stabilize consumer prices and provide two months worth of buffer stock.

“This includes the 150,000 MT refined imports approved by President Marcos as stated in Sugar Order No. 7. Consumption stays at 2.2 million MT as prices remain elevated,” the USDA said.

The Philippines’ sugar crop year 2023 begins on September 1, 2023 and ends on August 31, 2024.

The SRA earlier said it is mandated to institute measures and ensure the stability of domestic sugar supply.

The sugar industry regulator had said that it has the power to establish and maintain a balanced relationship between sugar production and the requirements of sugar, and to maintain such marketing conditions as it will ensure stabilized prices at levels reasonably profitable to the producers and fair to consumers.—AOL, GMA Integrated News