Domestic sugar prices increase
HA NOI — Sugar prices continued to increase in recent weeks due to a modest supply on the international market.
A sugar packaging production line at Bourbon Sugarcane Company in southern Tay Ninh Province. Sugar prices continue to increase due to a modest supply on the international market as well as increasing demand for the upcoming mid-autumn festival. — VNA/VNS Photo Phuong Vy
The proximity of the mid-autumn festival has also pushed up demand for sugar on the domestic market, which has led to further inflation of the commodity, reported the Viet Nam Sugar and Sugarcane Association.
"This year, the sugar yield from big suppliers in Thailand and China dramatically decreased, which has made the commodity more expensive on the international and domestic markets," said Ha Huu Phai, secretary of the association.
On the London market, the price increased by 12.9 per cent in the last two months. In May, sugar cost US$469 per tonne, but by mid-July the price had increased to $529 per tonne.
At domestic retail and super markets, sugar now cost from VND17,000 to VND21,000 ($1.1) per kilo, up by around VND2,500.
While sugar prices continue to increase, producers say that a shortage of the commodity will lead to further inflation.
According to Nguyen Thanh Long, director the of Can Tho Sugar Company, the sugarcane yield this year has been affected by the bad weather and a crop disease.
He said that some farmers had to re-plant their sugarcane because of a crop disease, which would push back their harvest by two or three months.
Pham Thi Sum, chairwoman of the Bien Hoa Sugar Company, said all sugar companies in the Cuu Long (Mekong) Delta were facing material shortages because of the unusually high temperatures.
The Ministry of Agriculture and Rural Development reported that sugarcane yields are expected to decrease by 12 per cent this year. However, the association claims that there will be no sugar shortages this year.
"There is currently 174,000 tonnes of sugar stockpiled. Also, there is about 30,000 to 40,000 tonnes of sugar that has yet to be imported," said Phai.
Phai also claimed that the State would import an additional 150,000 tonnes of sugar in order to prevent a shortage.
"I am sure that there will be enough sugar for the mid-autumn festival," Phai said. — VNS