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Nation to boost sugar imports
Viet Nam will import an additional 40,000 tonnes of sugar this year to meet domestic demand, according to Nguyen Bai Duong, an official of the Department of Agriculture, Forestry and Fisheries Products Processing and Salt Industry.
"Viet Nam will import 61,000 tonnes of sugar this year," Duong said. "Currently, the quantity of sugar produced domestically cannot meet demand and prices keep increasing, so higher imports will help stabilise the price," he added.
Domestic production in 2008-09 yielded just 995,000 tonnes from an area of 270,600ha, 20 per cent less than the previous crop, according to the Ministry of Agriculture and Rural Development.
Viet Nam Sugarcane and Sugar Association general secretary, Ha Huu Phai, said bad weather and pests strongly affected last crop.
In addition, many farmers replaced sugarcane with other crops, such as cassava or rubber, due to higher profits, he said.
The area under cane cultivation in 2008-09 was 36,000ha lower than the previous crop, confirmed the ministry.
And sugar prices have continued rising despite official assurances that the country doesn’t face a sugar shortage. Yields from the 2009-10 were predicted to reach 1.13 million tonnes, 13 per cent more than the most recent crop.
But, the ministry has acknowledged, this still falls short of overall domestic demand totalling 1.2 million tonnes of sugar per year.
Sugar mills in the Cuu Long (Mekong) Delta region have already geared up operations because local farmers keep harvesting cane earlier due to flooding.
The price of cane in the region has increased by VND250,000 (US$13) per tonne and is now running between VND680,000 ($37) and VND700,000 ($38) per tonne, according to Doan Xuan Hoa, deputy head of the Department of Agricultural, Forestry and Fisheries Products Processing and Salt Industry.
"Before the crop was even planted, members of the Viet Nam Sugar Association were proposing a floor price be established for sugarcane at VND600,000 ($33) per tonne," Hoa said.
To stabilise the market, MARD has worked with local mills and distributors to adjust sugarcane purchases in the region and given local farmers some advice in planting.
The ministry has also co-ordinated with provinces to improve irrigation systems.
"In recent years, local farmers have felt more at ease to grow sugarcane since they have received support from the State," Hoa said.
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