Revised estimates indicate that crop year 2007-2008 production will be 2.28 million metric tons and the domestic demand could rise to 2.05 million metric tons, Sugar Regulatory Administrator Rafael Coscolluela said yesterday.

The initial estimate for the domestic demand was 1.9 million MT and 2.3 million for actual production, he said.

On Friday, Coscolluela issued Sugar Order No. 1-B revising the sugar policy on the percentage allocation for CY 2007-2008 by providing for C (reserve) sugar and reducing the allocation of D (world market) sugar.

Section 2 (B) of Executive Order No. 18, series of 1986, mandates the SRA to establish and maintain a balanced relation between production and requirement of sugar to ensure stabilized prices at levels reasonably profitable to producers and fair to consumers.

Consultations have been done with sugar leaders and other stakeholders who have recommended to establish a reserve program in times of peak production in order to stabilize prices, Coscolluela said.

It is of national interest to place those engaged in the sugar industry in an environment of economic viability by providing a certain portion of the raw sugar production during the peak production months as reserve at the appropriate time in order to stabilize prices, Coscolluela said.

He said placing 15 percent of the country's production as reserve is appropriate at this time.

With the revised production estimate of 2.28 million MT and the demand possibly reaching 2.05 million MT, there will be 129,000 MT left for the US quota requirements and 101,000 MT surplus of the estimated production to be allocated for D, he said.

So under Sugar order 1-B sugar in the country will be allocated as A ( US quota) – 6 percent, B (domestic sugar) – 75 percent, C (reserve sugar) – 15 percent and D (world market) – 4 percent, Coscolluela said.

Meanwhile, Negros Occidental Gov. Joseph Marañon yesterday said the allocation for reserve sugar was necessary or the prices will drop that would be bad for the farmers.

He also stressed the need for authorities to file charges against those caught smuggling “magic sugar” or sodium cyclamate that is harmful to people's health to show that they mean business.

The National Bureau of Investigation confiscated the smuggled sweeter being sold at a Bacolod store last week.*CPG

back to top