Philippines : Raw sugar output falls 11%
The Philippines’ raw sugar production fell 11% to 1.85 million tonnes by 5 July, while cane milling and molasses output also declined. Despite softer domestic demand, raw sugar exports to the US surged 49.7%, supported by a 145,235-tonne tariff-rate quota for FY2027.
RAW sugar production from mills fell 11 percent to 1,847,523 metric tons (MT) as of July 5, from 2,078,446 MT in the same period last year, the Sugar Regulatory Administration (SRA) said in its latest data.
Total cane milled also dropped 11 percent to 23,073,917 MT from 25,931,263 MT a year earlier.
Molasses production declined 7.34 percent to 1,080,049.45 MT in early July, from 1,165,627.78 MT in the same period last year.
Domestic demand likewise softened, down 4.25 percent for raw sugar and 4.96 percent for refined sugar. Physical inventory stood at 421,826 MT for raw sugar and 454,309 MT for refined sugar.
To boost local production without expanding planting areas, the SRA has moved its planting calendar Oct. 1 this year to Sept. 30, 2027 — giving sugarcane more time to mature and raise its sugar content.
As of July 27, the Department of Agriculture’s Bantay Presyo listed retail prices at P80/kg for refined sugar, P75/kg for washed sugar, and P70/kg for brown sugar.
Exports
The Philippines exported 98,578 MT of raw sugar to the United States as of early July, up 49.68 percent from 66,126 MT in the same period last year.
The country recently secured a 145,235-MT raw value (MTRV) export quota for raw cane sugar to the US at a lower tariff for fiscal year 2027, which runs Oct. 1, 2026–Sept. 30, 2027. The allocation, announced by the Office of the United States Trade Representative on July 23, is the second-largest among participating countries.
This marks the fourth straight year that the Philippines has received the same allocation. The country has held a 145,235-MTRV quota for raw cane sugar under the US tariff-rate quota (TRQ) system since fiscal year 2024.
Under the TRQ system, countries may export a set volume of a product to the US at a lower tariff, with any volume beyond that threshold subject to a higher rate.
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Source : The Manila Times
