The country's sugar output as of June 27 reached 2.134 million metric tons (MMT), flat compared to the previous year's output, latest Sugar Regulatory Administration (SRA) data showed.

Nonetheless, the latest production estimate has slightly surpassed the revised sugar production projection of 2.101 MMT for crop year 2020-2021, which will end on August 31.

SRA data also showed that the country's total sugar supply inched up to 2.389 MMT from last year's 2.385 MMT due to the higher mill balance of 254,839 MT at the start of the crop year last September 1, 2020.

The volume of sugar canes milled in the current crop year reached a four-year high, according to data from the agency. The volume of sugarcane milled as of June 27 expanded by 8.32 percent to 25.142 MMT from last year's 23.211 MMT while sugar yield dropped by 7.57 percent to 1.71 50-kilogram bag per ton cane (LKg/TC).

SRA data showed that the volume of sugarcanes milled in the current crop year is the highest since crop year 2016-2017, when volume reached 28.005 MMT.

The drop in sugar content in cane caused by La Niña forced the SRA to revise its sugar allocation for the current crop year last March and scrap any remaining volume of "A" sugar or those bound for the United States.

The SRA decided to allocate all sugar production for the domestic market and classify it as "B" sugar. (Related story: https://businessmirror.com.ph/2021/03/31/sra-allots-most-of-sugar-production-to-domestic-market/)

The drop in LKg/TC was also the reason behind the revision of the total sugar output forecast for the current crop year.

Sugar production in the current crop year is just 11,053 MT away from matching the 2.145 MMT total output recorded in the previous crop year.

SRA data also indicated that demand for raw sugar and refined sugar was higher compared to the previous crop year.

Raw sugar demand, as determined by withdrawals, rose by 11.1 percent to 1.856 MMT compared to the 1.671 MMT recorded in the previous crop year.

Domestic withdrawals alone grew by 9.36 percent to 1.752 MMT while raw sugar withdrawals for export to the US expanded by 52.24 percent to 103,985 MT.

SRA data also revealed that the country has exported 104,012 MT of raw sugar to the US. The figure is 75.28 percent of the Philippines's allocation of 138,154 MT for the current fiscal year.

As for refined sugar, data indicated that demand rose by 1.41 percent to 824,882.95 MT from the previous crop year's 813,400.15 MT.

Refined sugar withdrawal for domestic use alone expanded by 28.63 percent to 741,536.10 MT from last year's 576,490.15 MT.

However, total refined sugar production as of June 27 declined by 8.35 percent to 746,089.90 MT from last year's 814,080.45 MT.

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