USDA: Philippines to close sugar crop year with fewer stocks than expected

The Philippines is set to close the crop year with a lower sugar stock than earlier expected, as production is seen to be flat for the second year while demand continues to increase, the United States Department of Agriculture (USDA) said.

In its November 2023 report, the USDA said the Philippines is expected to end the 2023-2024 crop year with 1.322 million metric tons (MT), lower than the 1.358 million MT it projected in May, and the 1.465 million MT recorded the previous year.

This comes as Philippine sugar production is expected to hit 1.8 million MT this year, lower than the 1.9 million MT it forecasted in May, and slightly higher than the 1.799 million MT recorded in 2022.

“Philippines production is flat for a second year in a row… Exports are estimated to remain at zero following the Philippine Sugar Regulatory Administration (SRA) allocating all production to domestic consumption,” according to the USDA report.

The Philippines’ sugar crop year 2023 started on September 1, 2023, and will end on August 31, 2024.

To recall, the SRA in September issued Sugar Order No. 1, allocating all the sugar produced for the crop year 2022-2023 for domestic use, citing the anticipated double-digit decline in production.

“Stocks are down on higher consumption and stable production,” the USDA said.

The agency estimates Philippine consumption for the year to be 2.2 million MT, unchanged from the May report, but higher than the 2.0 million MT recorded in the previous year.

GMA News Online has reached out to the SRA for comment, but has yet to receive a response as of this posting.

The USDA’s production estimate is close to the 1.85 million MT estimated by the SRA — mandated to ensure the stability of domestic sugar supply — in September, citing the threat of the El Niño phenomenon.—RF, GMA Integrated News