Vietnam firms raise sugarcane prices amid weak supply

Sugar firms in the Mekong Delta region of Vietnam agreed to raise purchase prices of sugarcane by 5% to VND1.05 million a ton of 10 CCS cane from Oct 18, given domestic tightened supply, state media said, citing a local refiner.

Vo Van Son, deputy general director of Can Tho Sugar JSC (Casuco) said that despite the price hike, the refineries are still running at lower their designed capacity due to input shortage.

Son attributed the input shortage to the fact that farmers delay their harvest for hope that the prices will go up further.

At the VND1.1-million price, farmers can make profits of between VND70 million and VND100 million per hectare, the highest level so far, the deputy director added.

Cities and provinces in the Mekong Delta region are estimated to have grown

Earlier, the Vietnam Sugar and Can Association forecasted that the regional refineries will suffer a shortage of 400,000 tons of sugarcane in this crop, due to narrowed area.

Cities and provinces in the region have cultivated 48,000 hectares of sugarcane for this crop, expecting to harvest around 3.2 million tons of sugarcane, while local refiner- ies are estimated to need 3.6 million tons.-Vietnamplus

Tags: Vietnam sugar, Vietnam Sugar Prices

Posted by VBN on Oct 23 2010. Filed under Agriculture. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry