The new head of the Sugar Regulatory Administration is upbeat about the future of the Philippine sugar industry with farmgate prices expected to remain profitable for farmers, even as retail prices drop.
Pablo Luis Azcona, SRA acting administrator and chief executive officer, said on Monday, May 1, that they are focusing on the distribution of seized smuggled refined sugar for sale at P70 a kilo through Kadiwa outlets and local governments units (LGUs), and on ways to increase the country’s domestic production of the sweetener.
Of the close to 10,000 tons of seized sugar about 4,000 tons have already been approved for sale at Kadiwa stores and through LGUs, he told DIGICAST NEGROS.
Azcona said the SRA would grant the request of Mayor Alfredo Abelardo Benitez for more sugar to be sold in Bacolod City at P70 per kilo. He is just waiting for the official request of the mayor, Azcona said.
The remaining seized 6,000 tons will also be released for sale at P70 a kilo later, he added.
The initial projected sugar production of the Philippines for crop year 2022-2023 was 1.831 million metric tons, but it has dropped to 1,825 million MT, Azcona said.
There is also a projected worldwide drop in sugar production that has caused an increase in the world prices of sugar, he added.
This will be good for Philippine farmers if retailers and wholesalers don’t make too much profit, he said.
Azcona said of the 440,000 metric tons to be imported under Sugar Order No. 6 to meet the shortfall in the country’s production this crop year, 195,000 MT has arrived in the country and so far only 86,000 MT has been released into the domestic market.
As agreed on, the rest of the imported sugar should arrive after the milling season, he said.
Then infusion of the imported sugar into the domestic market has caused the retail prices of sugar that were at P105 to P110 per kilo to drop P85 to P90 a kilo, he said.
But the farmgate prices of sugar have remained above 3,000 per LKg, he added. In fact farmgate prices were at P3,200 to P3,300 per LKg last week, Azcona added.
“I think the future is very hopeful,” Azcona said, as he expects farmgate prices to remain good in crop year 2023-2024.
Azcona said they are also finding ways to help the Batangas farmers with one sugar mill in the area having closed down.
This could mean a loss of about 9,000 MT, he said.
An industry source said sugar production for Crop Year 2022-2023 was expected to bring P69,120,000,000 into the economy of Negros Occidental from Sept. 1, 2022 to Aug. 30, 2023.*