PinoyBusiness.ORG – Home

Because of the fear of shortfall, the Sugar Regulatory Administration (SRA) has increased allocation of this commodity for local consumption in the 2009-2010 crop year.  The SRA, together with the Philippine Sugar Millers Association Inc. (PSMA) has allocated 1.944 million metric tons  (MT), this is equivalent to 90% of the expected 2.16  million MT raw sugar production this year for the domestic market, which is more than the 1.4 million MT last year.

For the 2008-2009 crop year, the government fell short of its target by 5.8% at 2.09 million MT. this is because of poor weather conditions that hindered the growth of sugarcane, as well as the high fertilizer prices. “We just have to make sure that the domestic market will not have a supply shortfall,” said PSMA Executive Director Archimedes B. Amarra, who added that “Production dropped last year because farmers did not use fertilizers due to high prices.”

The Department of Agriculture has noted a 30% drop in the use of petrochemical fertilizer in July last year. fertilizer accounts for a third of crop production cost, the price of which went up to P1,600-P1,900 per bag from P850/bag year-on-year. but early this year, it has dropped back to P700-P1,300 per bag, and has maintained that level ever since.

The price of raw sugar is currently pegged at about P800 per 50-kilogram bag in farms, which is higher compared to the P650/Lkb bag last year for the same period and P700/Lkg late last year.

The cycle of sugar crop year begins in September and ends in August the following year.

Sugar is classified by SRA into “A” for export to the US, “B” for domestic consumption, “C” for reserves, and “D” for export to markets other than the US and for local food manufacturers.