MANILA, Philippines - The Philippines may put on hold or cancel a plan to import 134,000 tons of sugar as local prices stabilise with a drop in global prices, a senior government official said on Thursday.

The imports were part of the 150,000 tons that Manila was looking to import to rein in rising domestic prices. The government auctioned import rights for 60,000 tons last week, but bidders only offered to import a total 16,000 tons.

The shipments would be the first sugar imports since 2006.

"The options would be to suspend or cancel the import plan. Why import if the prices have dropped locally," said Rafael Coscolluela, head of the Sugar Regulatory Administration.

He said another option is for the government to amend the rules to make it more attractive for importers to buy sugar.

Coscolluela also said raw sugar output forecast for the current crop year to August may be reduced due to the impact of the El Nino weather phenomenon.

"We were expecting 2.18 million tons and towards the end of the milling season. It seems like El Nino has affected the standing crop to some extent, tonnage is lower," Coscolluela told Reuters in a phone interview.

"We're talking about a possible reduction in our crop estimate to 2.147 million tons."

Coscolluela said the El Nino, which leads to drier weather, will likely have a bigger impact on the next crop, with the initial raw sugar production estimate of 2.3 million tons for 2010-11 likely to be lower.