The Sugar Regulatory Administration (SRA) has maintained its sugar production outlook for crop year 2012 to 2013, despite two massive typhoons that hit the country in the fourth quarter of last year.

Ma. Regina Bautista-Martin, SRA administrator, said that the agency has maintained the target of 2.356 million metric tons (MT), noting that the Philippines remained resilient despite the effects of typhoons Pablo and Quinta that hit Mindanao and Visayas sugar-producing areas.

As of the week ending December 16, 2012, sugar production for the current crop year has reached  872,978.87 MT, or 37.048 percent of the forecast production.

”This is 27.19 percent higher than last year for the same period. The increase in production is attributed to early milling, higher rate of crushing, and favorable weather condition in the last quarter of the 2012,” Martin said.

Based on SRA records, sugar withdrawals for domestic demand has been higher compared to last year’s level at 28.61 percent for raw sugar and 22.80 percent for refined sugar.

SRA is expecting strong sugar demand for 2013 from stable sugar prices and the mid-term elections in May 2013.

Martin is also confident that Philippine sugar will continue to be a dollar earner for the country, as exports to the US and other markets continue.

Shipments under the US Quota program will start this January 2013, while exports to the world has reached more than 20,000 MT.

Martin said that world sugar supply is expected to have a surplus from favorable crushing and weather conditions in some of the major sugar producing countries such as Brazil, India and Thailand.

”This will have pressure on sugar prices, but we are hopeful that domestic prices will continue to be stable, as shown in price movements over the past months,” she said.

”The need to increase productivity and reduce cost of production is even more imperative now,” Martin added.

With import tariffs at 18 percent starting January 1, the SRA head said that there is a need to be vigilant in assessing the impact of world market situation on local prices.