|
Sugar swallowing bitter forecasts
The sugar industry has been forecast to face difficulties in the 2009-2010 crop due to the sharp fall of sugar cane output.
The sugar price has been increasing continuously in the last ten days. Sugar products are retailing at 12,500-13,500 dong per kilogramme, an increase of 2,000 dong per kilogramme over last month.
The showroom of Can Tho Sugar Company (Casuco) is now quoting the wholesale price at 12,000 dong per kilogramme. According to Le Dieu Hien, a saleswoman of the showroom, the deepest low was 8,400 dong per kilogramme.
Local newspaper Nguoi lao dong has found out that the sugar price has been escalating because some sugar plants have not been operating for the last few months because of a serious shortage of materials. Casuco, for example, halted processing in May because of no sugar cane. It is expected that Casuco’s plant will not resume production until mid September.
Moreover, sugar price increases have also been attributed to the decrease of illegal imports from Thailand across the southwest border gate.
Nguyen Thanh Long, Chairman of Casuco, said that it is now the end of the crop and sugar cane has run out, so sugar plants do not have materials for production. Therefore, sugar prices have been pushed up by traders.
Traders, meanwhile, say that sugar prices have increased also because confectionary producers are collecting sugar to make moon cakes to prepare for the mid-Autumn festival.
They have forecast that the sugar price will keep rising in August and September as supply will not be able to catch up with demand.
Difficulties ahead
The sugar industry is facing uncertainties due to the sharply decreasing sugar cane growing areas.
A lot of farmers have shifted from cultivating sugar cane to farming rice, peanuts and maize, which give high yield, allowing them to earn more profit.
In Hau Giang province, in the 2009-2010 sugar cane crop, there are 12,979 hectares of sugar cane, a decrease of 2,000 hectares from the 2007-2008 crop.
Tran Van Chot, Deputy Director of Hau Giang province, has confirmed that the sugar cane growing area in the province has been decreasing. The provincial authorities have been taking measures to maintain the sugar cane growing areas and help increase profit for farmers.
Vietnam importing sugar to stabilise domestic prices
Vo Thanh Dang, Chairman of the Vietnam Sugar and Sugar Cane Association, said that the Government has allowed the import of 61,000 tonnes of sugar to help stabilise the market. 30,000 tonnes of sugar have been imported so far, while the remaining volume will be imported in the last months of the year.
Dang said that the new sugar crop will not begin until September, which means that the sugar price will decrease by that time.
VietNamNet, NLD
|
