The sugarcane sector is facing record-low prices despite an increase of 500,000 tonnes of output over last year, leading to high inventory levels, according to the Việt Nam Sugar and Sugarcane Association (VSSA).
The sugar industry needs to restructure to compete with rivals in other countries such as Thailand, according to the Việt Nam Sugar and Sugarcane Association.
The Việt Nam Sugar and Sugarcane Association has proposed to the Prime Minister not to allow an extension for temporary sugar imports for re-export as the sweet industry was struggling with high stockpiles and slumping prices due to illegally imported sugar.
The tax on imported sugar, as stipulated by the ASEAN Trade in Goods Agreement (ATIGA), will be maintained at 5 per cent from the beginning of this year, instead of zero per cent as previously rumoured.
The huge volume of cheap sugar smuggled in from Thailand is among the key reasons for high inventories at sugar factories, according to the Việt Nam Sugar and Sugarcane Association.
The nation’s sugar industry might be harmed by increased imports of sugar if the Ministry of Industry and Trade’s proposal to import an additional 200,000 tonnes is approved.