Phl eyes sugar exports

With a bumper sugarcane harvest, the Philippines is poised to export at least 300,000 metric tons (MT) of raw and refined sugar this crop year (CY).

Agriculture Secretary Proceso J. Alcala said with a substantial harvest of 2.39 million MT for CY 2010-11, 21.3 percent (%) more than last year, the country is on the way to regaining its previous distinction as a net sugar exporter.

“We have been making great strides in sugar production the past year. This may very well be the start of the country producing more than enough to meet its domestic requirements and quota obligations, but also to ensure that sugar farmers have a reasonable, sufficient, and ‘livable’ income,” Secretary Alcala said during the 17th Asia International Sugar Conference (AISC) in Cebu , August 16, 2011

With continuing synergistic efforts of sugar industry farmers and stakeholder s, and government through the DA-Sugar Regulatory Administration (SRA), Secretary Alcala said the country may no longer import sugar and instead be a major sugar supplier in Southeast Asia .

Thus, due to bumper harvest, supply of raw sugar increased five-fold to more than 623,500 MT. This is also due to lesser sugar consumption, which dipped to 1.5 million MT this year, from 1.8 million MT in CY 2009-10.

As a result prices of raw sugar fell from a high of P2,480 per 50-kilo bag to P1,300.

The same is true with refined sugar. Domestic consumption dramatically dropped to 655,840 MT, 31% less than last year, leaving a balance of more than 300,000 MT.

Similarly, prices of refined sugar also dropped from a high of P2,600 per 50-kilo bag to about P1,950 per bag.

Secretary Alcala said the country remains confident to maintain a high level of production for CY 2011-12.m, of at least 2.4 million MT of raw sugar.

“We look forward to build from these gains next year, as more farms are planted and program interventions continue for CY 2011-2012,” he said.

In particular, he said the DA-SRA will improve the efficiency and productivity of small farms by providing necessary infrastructure like bigger and automated loading ports, farm-to-mill roads, irrigation facilities, financing windows, and other support services through the DA convergence initiatives with other departments, particularly agrarian reform (DAR) and environment and natural resources (DENR).

Further, he said the DA-SRA will continue to partner with the Bureau of Customs, other concerned agencies and sugar industry players to prevent the entry of smuggled sugar, which adversely distorts local supply and prices.

Also, the DA-SRA will support the development of other feasible alternative uses of sugarcane and its by-products such as bio-ethanol and power co-generation.

“As we near the realization of the full potential of sugarcane especially in biofuel, and with a more stable supply, we anticipate a more productive and profitable Philippine sugar industry,” Secretary Alcala told over 2,000 conference delegates from Europe, India, Thailand, Malaysia, Brazil, Indonesia, China and Hongkong, Singapore, and Africa. DA Information Service