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Sugar prices increase due to sugarcane shortage
13 | 12 | 2007
A shortage of sugarcane on the domestic market has led to higher prices for sugar, according to agricultural officials. In Southern Hau Giang province’s Phung Hiep district, sugarcane prices now stand at 450-500 VND a kg compared to 340-360 VND a kg at the end of October.

Pham Hong Van, head of the Economy Office of Cu Lao Dung district, which has the largest sugar cane area in southern Soc Trang province, said farmers were earning 15-20 million VND (937-1,250 USD) from one ha of sugar cane.

Many farmers, however, were waiting to sell their sugar cane at a later date when prices are expected to increase even further during the peak of the sugar processing season, Van said.

The shortage is so severe that some factories have temporarily halted production several times.

The price of locally made sugar has risen because factories are not producing enough to meet current demand.

Because of the higher prices, cheaper Thai sugar is increasingly being smuggled into the Cuu Long (Mekong) Delta region, according to the An Giang province’s Customs Office.

Sugar factories in the central and northern provinces have begun this year’s production season in mid-November two weeks later than normal because of recent floods, which has also contributed to higher prices.

The sugar supply is expected to improve when the Cuu Long (Mekong) Delta region enters its peak sugar cane harvest season soon.

Sugar factories in the central and northern provinces will also begin to transport their sugar to the south for sale, which could possibly help lower prices.

Sugar prices last week increased to 9,200 -10,000 VND a kg from 6,000-6,500 VND a kg.



Source: vneconomy.com.vn
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