Domestic sugar output to plunge further

Published by rudy Date posted on January 28, 2010

AMID the skyrocketing sugar prices today, the projected extreme bad weather conditions this year is expected to further take a toll on the country’s declining cane output, Victorias Milling Co. Inc. said.

Besides the expected bad weather conditions like El Niño, La Niña or flash floods, Victorias Milling also expects the diversion of cane from sugar millers to ethanol production will affect the tight sugar supply in the domestic market.

From 2008 until last year, the sugar miller firm warned that it has already experienced a significant reduction in its production compared with the previous years.

Victorias Milling cited that national production has dropped 25 percent in metric tons cane milled and 15 percent in sugar produced.

In the country’s main sugar source, Negros Occidental, the province’s production also dropped 18 percent, while Victorias Milling saw an 18-percent reduction.

“The total number of canes milled in Negros Occidental is only 10.546 million metric tons [of] cane as against [2008’s] 12.67 million metric tons [of] cane,” Victorias Milling said.

Competition with ethanol

To date, Victoria’s Milling said that the price of sugar is volatile and unpredictable, and that the competition for cane supply is affected by ethanol production. There is also the lowering of trade barriers starting this year, which poses price competition with imported sugar.

The departments of Agriculture, and Trade and Industry are now closely monitoring retail prices of sugar in Metro Manila and elsewhere and will not hesitate to padlock establishments or stores—and file appropriate charges against their owners—caught selling this commodity beyond the newly pegged suggested retail price (SRP) of P52 a kilo.

“We will swoop down on establishments selling sugar for P55 to P60 a kilo and ask their owners or managers to explain their price levels,” said Agriculture Secretary Arturo Yap. “If they cannot give a valid explanation for selling sugar beyond the newly set SRP of P52 a kilo, then we can close down their outlets and file charges against them for violating the Price Act.” –CHINO S. LEYCO Reporter, Manila Times

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