Vietnam sugar association expects sugar price at VND18,000 a kilo next season

The Vietnam Sugarcane and Sugar Association estimates that the sugar price in the next harvest season will be 18,000 dong per kilo, and it will intervene in case the price changes by 10%.
At its general meeting on Friday in HCM City, the association said the local sugar price was stable in the last three years, resulting in high income for sugarcane farmers and encouraging sugar mills to increase investment to expand sugarcane cultivation areas.

To prevent farmers to switch to rubber and cassava cultivation, the association called for efforts to maintain the sugar price at 18,000 dong a kilo to ensure the price of sugarcane material not lower than 1 million dong a ton. Therefore, sugarcane farmers would be encouraged to expand their cultivation area, or least not switch to other crops with higher economic value.

The sugar association said the illicit trade in sugar would remain a headache in the coming time due to its impact on local price but there has been no solution yet. It is predicted that in the upcoming years, the local sugar price will be unstable depending on the amount of smuggled sugar.

Besides, during sugar processing season from October to June, sugar mills often sell their produce immediately without storing for the market after the season. Therefore, sugar price often turns volatile between July and September.
Saigon Times Daily

Tags: Vietnam sugar, Vietnam Sugar Prices

Posted by VBN on Sep 6 2011. 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