Industry stakeholders lauded the allocation of all of the sugar produced in the country for crop year 2021-2022 as “B” for sale in the domestic market on Wednesday, September 1.
Sugar Order No 1, Series of 2021-2022, released Tuesday said the expected La Niña phenomenon in late October to November until the first quarter of 2022 will bring above normal rainfall that will result in low sugar production.
The Sugar Regulatory Administration pre-milling estimate for crop year 2021-2022 for raw sugar production is at 2,099,720.71 metric tons, the sugar order said.
The raw sugar supply and demand projections of the SRA Regulation Department shows that even with the carry-over volume of 158,557 metric tons of domestic sugar, the country’s sugar supply situation is better served with an all “B” allocation, the order said.
The order also said almost all industry stakeholders recommended a 100 percent “B” sugar allocation.
Manuel Lamata, United Sugar Producers Federation president, said that they are thankful that the SRA heard their call for a 100 percent “B” sugar allocation.
“We are thankful that the Sugar Board is prioritizing the local market considering that there is a drop also in the projected sugar output for this milling season,” Lamata said.
CONFED
Raymond Montinola, Confederation of Sugar Producers Associations (CONDED) president, said the all “B” allocation is highly appreciated as it will help sugar producers meet the rising costs of production and cope with the effects of a “back to back” La Niña.
Production has dropped over the last four years due to adverse weather aside from reduction in planted area, he noted.
Efforts to improve productivity are being undertaken by the industry, but challenges remain, Montinola said.
Montinola cited the increasing prices of fertilizers, fuel and equipment maintenance, plus labor and other production costs.
CONFED is supportive of the review of the Sugarcane Industry Road Map, which is ongoing and will likely point to the need for soil amelioration, better cultural practices, farm mechanization, increased use of HYV’s, and more intensive extension services especially for small planters and block farms, he added.
Confed is also calling for the more efficient and effective use of the Sugar Industry Development Act fund allocations, and urges all stakeholders to pursue productivity improvement measures with more vigor, Montinola said.
At the same time, the industry should not forget the labor sector and continue to support its socio-economic development arms, he added.
Montinola appealed for local governments and planters to address the possible emergence of malnutrition and health-related problems among children of farm workers, especially those of school age, in these trying times.
NFSP
The National Federation of Sugarcane Planters (NFSP) headed by Enrique Rojas also lauded the SRA for heeding the call of sugar producers to allocate 100 percent of the sugar production as “B”.
“We laud SRA for its prudence in allocating all of our production for the domestic market. This allocation spares the sugar producers the losses they suffered last year arising from selling a portion of their sugar production to the US market at a lower price, compared to the more reasonable sugar prices in the domestic market,” Rojas said.*