Raw sugar production at the upcoming crop year is seen rising 3.8 percent as buoyant prices have encouraged more farmers to plant sugarcane, according to the United States Department of Agriculture (USDA) report.
The agency said the prevailing price of the commodity is not lost to Filipino farmers who look to plant more sugarcane instead of shifting to other crops like corn, cassava and bananas, with areas planted to sugarcane reaching 390,000 hectares from 388,000 hectares.
An agency report dated April 19 said Philippine production of raw sugar from September 2023 to August 2024 is projected to reach 1.9 million metric tons (MT) compared to the 1.83 million MT seen produced beginning September last year until August this year.
The sugarcane roadmap under the Sugarcane Industry Development Act endeavors to boost farm productivity through the use of high-yield varieties, continued genetic improvement and adoption of technology for better farm management practices should also take effect at the next crop year.
The USDA projected domestic consumption rising by at least 200,000 MT to 2.2 million MT as prices move lower and as more of the commodity become available in the market.
Nevertheless, the report said the Philippines may still import up to 240,000 MT of refined sugar although the activities was seen 63 percent lower than previous crop year’s 655,000 MT due to the continued need to stabilize consumer prices and to provide at least two months of buffer.
The USDA also projected the resumption of limited exports to the US of around 60,000 MT given the high production and high carryover.
