“New crop and consumption estimates do not justify any reduction or cancellation of the D (RP sugar allocated for the world market) program,” Sugar Regulatory Administrator Rafael Coscolluela said yesterday.

RP sugar production is still estimated above 2.1 million metric tons this crop year, he said.

So, “It is status quo until further notice,” Coscolluela said, after a Sugar Board meeting yesterday.

The Sugar Board  took up the call of the National Federation of Sugarcane Producers to stop the allocation of 4.5 percent of the Philippines’ sugar classified as “Dx” for export to the world market.

Effective on the week ending Dec. 7, 2008, Sugar Order No. 1-B split the original 7 percent “D (world market)” allocation into 4.5 percent “Dx” for export and 2.5 percent for food exporters, Coscolluela said.

Enrique Rojas, president of the National Federation of Sugarcane Planters, in a letter to Coscolluela Tuesday, said there has been a steady decline in the country’s raw sugar production for three consecutive weeks starting Dec. 7.

“While the production for the period is still higher compared to the same period last crop year, the difference in production is slowly declining.  It is highly possible that the declining production will eventually result to a shortfall this January compared to production for the same period in January ’08,” Rojas said.

“We have to move now for the scrapping of the “DX” allocation so that producers, particularly the small planters, can also avail of a more reasonable price for their sugar for the rest of what is projected to be a shorter crop year,” he said.

The country could also be forced to import sugar for domestic consumption, effectively compromising the national food security, Rojas also warned.

Coscolluela said the new crop estimate for the Visayas is actually slightly higher that the first but he is sending the results out again to all concerned for validation.

“That’s why I’m saying still above 2.1 million MT so we don’t get stuck with a fixed figure for now,” he said.

Butch Alisla, executive assistant to Coscolluela, said SRA figures show sugar production in the Visayas as of Dec. 31 was estimated at 1.416 million MT, and in Luzon and Mindanao as of Nov. 30 it was estimated at .781 million MT for a total of 2.197 million MT.

There may be adjustments to December estimate for Luzon and Mindanao, Alisla added.*CPG

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