The Philippine sugar industry remains hopeful of reaching its projected 1.78 million metric tons (MT) output for the 2024-2025 crop year.
Sugar Regulatory Administration (SRA) administrator Pablo Luis Azcona acknowledged the challenges posed by extreme weather, noting a decline in sugar content per metric ton.
“Hopefully, by the end of this administration, we can demonstrate a significant increase in production. Last year, we achieved a notable rise, producing 1.92 million metric tons [MT], up from 1.8 million MT. However, the estimate for 2025 is expected to be only 1.78 million MT due to the impact of El Niño,” Azcona said.
Azcona said current data point to an 11-percent decrease in sugar content per metric ton, unchanged since October 2024.
There is still a possibility to meet the 1.78 million MT target, as harvesting in northern Negros was delayed due to weather conditions, he said.
“The only thing that keeps us hoping is that the northern part of Negros is delayed in harvesting because of the weather. If that holds, then there is still a chance to hit 1.78 million MT,” Azcona said.
He also highlighted the disparity in irrigation access among sugar farms, with large farms managing yields well due to available water resources.
He noted that these farms only make up 10 percent of the industry, while 85 percent of sugar farms lack irrigation access.
The Philippines committed to exporting 66,000 metric tons of raw sugar to the US under the tariff rate quota (TRQ) system, ensuring the country’s continued preferential access to the US market at a lower tariff rate.
Traders and the US requested earlier sugar shipments to meet deadlines and avoid penalties.
“Last year’s shipment, which departed in August [2024], arrived just before the September 30 deadline, but its quality had deteriorated, incurring a 10-percent penalty,” said Azcona.
The export of 66,000 metric tons is planned for completion before April 2025, in time for the peak milling season.
The SRA reported that the inventory of raw sugar is increasing reaching up to 200,000 MT as of mid-February.