PHL to turn into net sugar exporter anew – Agri Dept.

With as much as 300,000 metric tons (MT) in sugar surplus, the Philippine government said it is poised to once again become a net sugar exporter. The country is now preparing to ship the excess supply to the world market. In a statement, Agriculture Secretary Proceso Alcala said the sugar sector's 2.39 million MT harvest for crop year 2010-2011 reflects production that is "enough to meet [the country's] domestic requirements and quota obligations." "[This will] also ensure that sugar farmers have reasonable, sufficient and 'livable' income," Alcala added. With the bumper harvest this crop year, Alcala said the country may not have to import sugar anymore and instead become one of the major suppliers of sugar in the region. In the current crop year, the supply of raw sugar went up five-fold to more than 623,500 MT, but was propped up by a dip in consumption which fell to 1.5 million MT from 1.8 million MT year-on-year. Similarly, domestic consumption of refined sugar nosedived to 655,840 MT during the period, or 31 percent lower year-on-year. Because of this, raw sugar prices fell from a high of P2,480 per 50-kilo bag to P1,300, while refined sugar prices dropped to P1,950 from P2,600. Alcala said the Agriculture Department is confident of surpassing the current gains come next crop year. The department said it expects the output next crop year to reach a minimum 2.4 million MT. “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," Alcala said. —JMT/VS, GMA News