August 28, 2015
Carla P. Gomez (Visayan Daily Star) | http://goo.gl/He5WvM
The Sugar Regulatory Administration has allocated all of the country's sugar production for crop year 2015-2016 to “B”, or the domestic sugar market, SRA Administrator Ma. Regina Bautista-Martin said yesterday.
Sugar Order No. 1 Series of 2015-2016 released by Martin yesterday states that 100 percent of the country's sugar will be allocated for the domestic sugar market to ensure stabilized prices at levels reasonably profitable to producers and fair to consumers.
The order states that due to unfavorable weather conditions and reduction of sugarcane areas, the total raw sugar production for crop year 2015-2016, from Sept. 1, 2015 to Aug. 31, 2016, is estimated at 2.27 million metric tons.
The domestic withdrawal is estimated to be more or less 2.25 million metric tons for crop year 2015-2016.
Martin said the allocation of all of the country's sugar for the “B” market is not for the first time, it was also done in 1988-89, 1991-92 and 1995-96.
Enrique Rojas, president of the National Federation of Sugarcane Planters, said the allocation of all of the country's sugar as “B” is good for both producers and consumers because they can enjoy a more stable sugar price.
“As to our US quota, we have measures in place to ensure that we can deliver on our commitment on the later part of the milling season,” he said.
The 100 percent “B” allocation is premised on a production estimate of 2.25 to 2.35 million MT that is just enough for the estimated domestic consumption of 2.2 million MT, Rojas said.
“Our real domestic consumption of more than 2 million finally surfaced because we were able to minimize the entry of smuggled sugar, primarily because of the efforts of SASO (Sugar Anti-Smuggling Office). We have to continue our vigilance against smuggling to protect the livelihood of our sugar farmers,” he said.
Sugar Order No. 1 states that the SRA will conduct periodic assessments of Crop Year 2015-2016 sugar production and withdrawal trends for the possible adjustment of the percentage distribution of the different classes of sugar.*CPG