Sugar production seen to reach 2.25 MMT this crop year

THE COUNTRY’S sugar production may reach 2.25 million metric tons (MMT), slightly above target of 2.24 MMT this crop year, the Sugar Regulatory Administration (SRA) said.

Rosemarie Gumera, SRA policy and planning manager, said that as of June 3, the country's sugar production has already reached 2.221 MMT, adding that they expect to slowly reach the 2.24 MMT target before the end of milling season this July.

“We expect to meet the target, and we may even hit as much as 2.25 MMT,” Gumera said in a telephone interview.

The official said sugar production is slowly inching its way to target with only six mills remain in operation.

Meanwhile, Gumera also expressed confidence that they will meet the sugar quota from the United States despite problems in consolidating supply of the sweetener.

On June 15, the agency has conducted a special bidding for the swapping of “D” or world market sugar into “A” US quota sugar allocation in order to fill up the additional sugar quota for crop year 2011-2012.

The total volume offered for the swapping is 47,217 MT of raw sugar, but only 33,763 MT were awarded to three major sugar exporters who participated in the bidding.

“We are having problems in consolidating the sugar supply since majority of the sugar classification that needed to be swapped are in small sugarcane farmers organization,” Gumera said.

In order to encourage full subscription of the remaining volume of 13,453 MT, Gumera said the SRA offered the winning bidders to award this volume to them pro-rata at a uniform replenishment bond of P10.00 per LKg bag.

“In case the winning bidders of the June 15th special bidding will not avail of the above offer, the SRA SBAC contemplates to hold a rebidding of the remaining volume of D to A sugar quedans or offer it to all interested stakeholders on a first-come-first-serve basis,” she said.

Gumera is now calling on all sugarcane farmers and their confederations to avail of the opportunity of swapping their “D” sugar into “A” sugar classification in order to fill up the additional US quota and flush out any outstanding world market sugar produced in the current crop year. (PNA)

Category: For Business