SRA sees 2010-2011 sugar output to reach 1.96 million MT

The Sugar Regulatory Administration (SRA) increased its production forecast to 1.96 million metric tons (MMT) from 1.87 million MT for crop year ending August 31, 2011. "We adjusted the production [forecast] after we reconciled the reports submitted by sugar planters and sugar millers showing a slight increase in the projected output," SRA manager for policy and planning Rosemarie Gumera said in an interview. The projected sugar production for crop year September 1, 2010 to August 31, 2011 is just enough to meet the annual domestic requirement of 2 million MT. The new forecast is lower by less than 1 percent compared to the 1.97 million MT registered for crop year ending August 31, 2010. According to the SRA, the downtrend in sugar production was triggered by two successive years of La Niña and seven months of El Niño coupled with very low sugar prices. SRA Administrator Ma. Regina Bautista-Martin said the country may have to import sugar for buffer stock implementation purposes at the end of the current crop year or by September 2011. "The Sugar Board, however, will still have to consider and decide on the volume, timing and mechanics of sugar importation," said Martin in a statement. The SRA confirmed that the Philippines needs a buffer stock of 200,000 MT of raw sugar and 100,000 MT of refined sugar by the end of every crop year. The buffer stock is needed to ensure that the local market will not run out of sugar while the milling season has not gone into high gear. The SRA allayed fears that the Philippines will run out of sugar since the existing inventory of raw sugar as of November 14 was 134,000 MT and 58,000 MT for refined sugar. On Wednesday, the National Price Coordinating Council (NPCC) announced lifting of the suggested reference price (SRP) of sugar for December 2010. This came about as retailers represented by the groceries and supermarkets associations said they might possibly pull out their sugar stocks in the market if the SRP of P56.00 per kilo of refined sugar will be enforced. The SRA noted that retailers said that they are buying refined sugar at P65.00 per kilo and they could no longer sell said sugar at the SRP of P56.00 per kilo. -- OMG, GMANews.TV