Agriculture Secretary Arthur Yap said new areas will be developed as plantations of sugarcane which could be used as feedstock for ethanol production, but he assured consumers that there are sufficient farmlands to ensure stable sugar supply.

"There is enough sugar production for food use. New areas will have to be developed to supply the needs of the ethanol plants that will be set up in partnership with foreign investors," Yap said in a statement. He said the Department of Agriculture, through the Sugar Regulatory Administration, will work closely with the Department of Energy in developing the Bioethanol Program, which aims to create a viable investment climate for potential investors in the biofuels industry and ensure energy security for the country.

Yap said the DA will scout for new sites in more than 20 provinces situated in 10 regions across the country where sugarcane is grown.

From 2005 to 2006, areas planted to sugarcane reached 377,182 hectares - 64,809 hectares are in Luzon and 312,373 hectares, in Visayas and Mindanao .

Chinese investors are seriously eyeing to develop an initial 40,000 hectares of agribusiness lands in the country for cassava and sugar that would be used to produce ethanol in China.

The Philippines regained its sugar self-sufficiency status in 2002 after having continuously increased production for the last five years. Raw sugar production for the crop period from 2003 to 2004 hit a 20-year high of 2.339 million metric tons and exceeded the 2.16 MMT initial target. For the crop year of 2005 to 2006 which ended in August last year, raw sugar production reached 2.137 MMT, a minimal 0.6% decrease over the previous crop year's 2.151 MMT. For 2006 to 2007, raw sugar production is estimated to reach 2.24 MMT, which is more than enough for domestic consumption and projected exports to the US market, SRA figures show.*

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