|
Domestic sugar price surges on back of global increase
Despite ample supplies, the local sugar price has risen over the last few days, according to the Viet Nam Sugar and Sugarcane Association.
On August 4, the sugar price stood at between VND12,200 (US$0.6) and VND12,500 per kilo. The price rose to VND13,100-VND13,700 on August 10 and VND13,500-VND14,200 per kilo yesterday, according to the association.
In the shops, the sugar price is even higher, ranging from VND15,000 to VND17,000 per kilo, nearly double the price at the beginning of the year.
Ha Huu Phai, general secretary of the association, said the domestic sugar price reflected global rises.
Phai said that from August 3-12, the sugar price rose by nearly $70 to $570 per tonne.
"Experts say this is the highest it’s been for 28 years," Phai said.
Moreover, sugar output domestically has fallen since 2008.
"In previous crops, the country produced about 1.15 million tonnes of sugar on average. This crop’s output is just 915,00 tonnes," Phai said.
He blamed bad weather and pests for the diminishing output.
Furthermore, he said many farmers were now growing cassava and rubber trees rather than sugarcane because they were more profitable.
Despite the fall in production, the association said sugar supplies in Viet Nam were plentiful. "We affirm that we do not lack sugar. Output still meets domestic demand although it is not as plentiful as in previous years," Phai said.
Demand has also pushed up prices. Large amounts of sugar is used to produce mooncakes for the mid-autumn festival.
If sugar consumption in 2009 is much the same as in 2008, production will meet demand up to the end of September, according to Vo Thanh Dang, chairman of the association.
The association also said that two sugar plants in Hau Giang and Tay Ninh provinces had started refining sugar from the new crop.
Other plants would start production in September when the next crop would be harvested, the association added.
viertnamnews
|
