The Sugar Regulatory Administration (SRA) has reported that the situation of the sugar industry in the country is stabilizing. SRA Chief Gina Martin disclosed that the price of raw sugar at millgate appreciated toward the desirable level of more than 1400 pesos per bag. The price averaged at 1430 pesos with one bid hitting as high as 1500 pesos per bag for domestic sugar.
Martin also reported increased physical movement of stocks with withdrawals for mills rising as the domestic market piles up the commodity due to the onset of summer. As of March 2012, raw sugar production in the Philippines has reached 1,608,117 metric tons (MT) or about 72% of the estimated crop year production of 2.242 MMT. Many big farms have completed harvesting but milling is still at its peak, signifying that there are still other farms with harvestable canes. These could be from the newly planted areas usually in the mountains or from far distances from the mills.
Prices at the world market have softened at less than $0.24 per pound. This will make it difficult for the Philippines to export sugar because the world market sugar is bought at a slightly higher price.
