PH to miss sugar output target on bad weather

30.07.2018

Sugar Regulatory Administration (SRA) Board Member Roland Beltran said that as of July 15, the country’s total production only stood at 2.1 million MT.

“Our sugar production has dropped. We will not be able to meet the projected 2.27 million MT,” Beltran said.

To recall, SRA originally pegged its forecast at 2.38 million MT but because of unfavorable weather conditions, it was forced to lower it to 2.27 million MT.

A crop year begins on September 1 and ends August 31 of the following year.Beltran, however, said that what is more important to SRA right now is the fact that the market already “started to calm down” with the entry of imported supply since this could eventually result in price improvements.

Despite this, agency has remained upbeat on the thought that prices may finally go down after months of continuous increase.

“The pacing or gradual arrival of imported sugar may have its advantages as it allows the market to correct itself and bring forth the much needed stability in prices. It is worth pointing out that the imported sugar augments the existing inventory from locally produced sugar,” Beltran said.

“Thus, our locally produced sugar inventory have been reinforced with the arrival of the imported sugar on a weekly basis until August 31, 2018 even as we prepare to enter the new crop year 2018 to 2019 starting September 1, 2018,” he added.

As of Friday, 18,550 metric tons (MT) of sugar already entered the country, 13,500 MT of which will go to bottling companies like Coca-Cola FEMSA Philippines (Coke).

To be exact, the country is expecting to import as much as 200,000 MT of sugar. Of this, 100,000 MT was set aside for bottlers’ grade refined sugar, while 50,000 MT will be standard grade refined sugar. The remaining 50,000 MTof raw sugar will be for domestic tolling or direct consumption.


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