WASHINGTON: Sugar regulators are considering additional imports to help keep prices stable amid expectations of lower-than-estimated domestic output due to the effect of the El Niño phenomenon.
Currently, importers are allowed to bring in 1.25 tons of sugar for every ton of exports to the United States. For the present US fiscal year that would end in September, the Office of the United States Trade Representative maintained the Philippines’ sugar quota allocation at 142,160 tons.
Based on Sugar Regulatory Administration (SRA) rules, the Philippines’ US quota suggests a maximum import volume of close to 177,700 tons.
SRA administrator Ma. Regina Bautista-Martin yesterday told reporters the regulator would come up with new guidelines for a proposed replacement program.
“(Domestic) sugar production for the current crop year is projected to be lower than initially estimated because of El Niño and a reduction in area planted with sugarcane,” Martin said.
For the crop year 2015-2016 ending in August, the SRA estimated output volume at a range of 2.15 million to 2.19 million tons. This means a decrease of 5.6 percent to 7.3 percent from the 2.32 million tons recorded in the previous crop year. Martin said last October local sugar plantations were already feeling the effects of what was considered one of the strongest occurrences of El Niño in history.
“The current El Niño phenomenon will certainly affect the next crop,” Martin said. “In the absence of irrigation, this will again result in poor germination for the plant cane and lower survival for the ratoon cane.” She added insufficient soil moisture would also decrease tillering capacity and retard stalk elongation, all resulting to lower cane and sugar production in affected farms.
According to Martin, the canes established for early planting in October and November succumbed to lower-than-normal rainfall at the start of 2015—with poor tillering or development of stems as well as leaf drying. “These factors, as well as faster sugar quality deterioration during extremely dry and hot conditions, will all result to lower cane and sugar yields,” Martin said.
