The Sugar Regulatory Administration yesterday predicted an 18.66 percent dip in the country's sugar production in the current crop year, the equivalent of 158,841 metric tons of sugar, the SRA said.

Negros production is expected to drop by as much as 53.08 percent, with Mindanao coming in next with 25.99 percent. Luzon is in third place, or a decrease of 25.67 percent.

In terms of metric tons, Mindanao 's production dip reaches 31,950. Luzon will slide down 18,632 MTs. But Negros is highest with a drop of 89,931 metric tons.

Fears were expressed yesterday why the selling price of sugar has remained relatively low despite the production drop. Withdrawals of refined sugar this year reached only 440,804 metric tons as against last year's 526,424 MTs, or a difference of 85,620 MTs.

SRA Administrator Rafael Coscolluela said the buying of sugar has remained virtually stable at P1,000 per Lkg. And he does not see a further drop because the price of sugar in the international market remain has started to climb in line with other commodities, particularly oil.

Indications are that sugar smuggling may be entering the country nationwide and this is reportedly based on the fact that the SRA team managed with the PSG to confiscate some 480 bags of sugar in Tuguegarao. Another report is that there are also smuggled sugar in Vigan, Ilocus Sur and also sugar from outside the country marketed in Cagayan de Oro City and other areas in Northern Mindanao .

The stocks confiscated in Tuguegarao (Cagayan) had come from Binondo, Manila , which means that the main center of smuggling is the National Capital Region.

Former E.B. Magalona Mayor Alfonso Gamboa said the problem may be lack of a distribution system of the sugar industry. An earlier study by then Victorias Milling Company's Frank Eala reportedly showed a glaring disparity in the distribution of sugar in the country with cast areas hardly served by marketing firms.

Coscolluela this is being addressed by the SRA. One of the major proposals was that the Philippine Sugar Corp. be asked to provide the means to handle the distribution, and for the National Food authority to also do it because it has enough warehouses for rice in many Luzon and other provinces of the country.

Coscolluela said that first thing that the SRA special monitoring fund will tackle is to find out where the refined sugar withdrawn from the mills is brought and how it is distributed.*RLE

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