The Sugar Regulatory Administration said Wednesday it expects lower sugar production in the current crop year because of the impact of El Niño dry spell.
SRA administrator Ma. Regina Martin said sugar production in crop year 2015 to 2016 was expected to reach 2.15 million to 2.19 million metric tons.
Martin said the projected volume would be significantly lower than the actual production of 2.32 million MT in the last crop year. It would also be lower compared with the earlier forecast of 2.25 million to 2.35 million MT.
“Because of El Niño and a reduction in area planted with sugarcane, sugar production is projected to be lower than the initial estimate at the start of the crop year,” Martin said.
Martin earlier said the government was likely to increase sugar imports in the current crop year to ensure there would be enough sugar in the domestic market.
SRA earlier allowed sugar producers and traders to import as much as 142,000 MT of sugar to replace the volume that would be shipped to the United States.
The Philippines received a regular US sugar quota allocation of 142,000 MT raw value under the tariff-rate quotas under crop year 2015 to 2016.
Martin said the additional sugar imports would ensure a healthy buffer stock for domestic consumption.
“SRA has a program being implemented now to export to the US and replace this volume within this crop year. Any additional imports yet to be determined will be announced soon,” Martin said.
