SRA maintains production estimate

THE Sugar Regulatory Administration (SRA) stands pat on its Crop Year (CY) 2012/13 sugar production forecasts at 2.356 million metric tons.

The Philippines remained resilient despite the effects of Typhoons Pablo and Quinta that hit Mindanao and Visayas sugar-producing areas, stated SRA Administrator Ma. Regina Bautista-Martin in a statement sent through email on Thursday.

As of weekending December 16, 2012, sugar production for the current CY has already reached 872,978.87 MT, or 37.048 percent of the forecast production.

This is 27.19 percent higher than the production for the same period last crop year, said Martin, who attributed the increase in production to early milling, higher rate of crushing, and favorable weather condition in the last quarter of the 2012.

On the other hand, she cited SRA records, which indicated that sugar withdrawals for domestic demand has been higher compared to last year's level at 28.61 percent for raw sugar and 22.80 percent for refined sugar.

SRA is expecting a strong sugar demand for 2013 due to stable sugar prices and the mid-term elections in May 2013, said Martin.

The campaign period will increase the demand for sugar needed for food and drinks during campaign sorties. Election spending will also increase consumer empowerment, which is likely to translate to greater sugar demand.

Moreover, Martin expressed confidence that Philippine sugar will continue to be a dollar earner of the country as it continues to export to the US and other markets.

Shipments under the US Quota program will start this January 2013, while exports to the world had already reached more than 20,000 metric tons, she disclosed.

World sugar supply is expected to have a surplus due to favorable crushing and weather conditions in some of the major sugar producing countries such as Brazil, India and Thailand.

This will have pressure on sugar prices but the SRA is hopeful that domestic prices will continue to be stable, as shown in price movements over the past months, she stated.

"The need to increase productivity and reduce cost of production is even more imperative now!" Martin stressed.

"With import tariffs at 18 percent starting January 1, 2013, we need to be vigilant in assessing the impact of world market situation on local prices," she added.