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Profits sweeter for sugarcane farmers
Sugarcane farmers are expected to earn high profits from the upcoming crop since global cane prices are up and sugar prices have soared in Viet Nam.
Sugar costs VND12,700-13,000 (US$0.71-$0.73)a kilogramme in the wholesale market compared to VND8,500 at the beginning of the year, after increasing earlier this month to VND13,800-14,000.
Globally, sugarcane yields have been slightly lower this year while consumption has risen, pushing up sugar prices, according to the Viet Nam Sugar and Sugarcane Association.
To take advantage of the high prices, several sugar mills in the Cuu Long (Mekong) Delta plan to harvest cane earlier than normal this year for processing.
But the association has advised them against it, warning that processing of premature cane would reduce output.
The region has 52,000ha under sugarcane now, 5,200ha more than last year, and output is estimated at over 3.8 million tonnes.
Some mills in the southeastern region began buying sugarcane from farmers last month, paying VND470,000-510,000 a tonne, or VND70-110,000 higher than last year, said Ha Huu Phat, general secretary of the association.
Sugar output from the current crop is expected to be 1.2 million tonnes, enough to meet domestic demand, according to the Department of Agro-Forestry Product Processing.
The association said local authorities should make suitable plans for sugarcane cultivation to ensure there would be enough raw material for the sugar industry.
vietnamnews
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