Proposal to extend sugar export period

The pressure to release sugar inventory is still the top concern of the entire sugar industry.

During most of the 2012-2013 sugarcane crop year, most sugar factories were struggling with large inventories. To date, sugar inventories in factories remain high.

According to Mr. Nguyen Hai, General Secretary of the Vietnam Sugarcane Association, so far, only Nuoc Trong Sugar Factory (Tay Ninh) has entered the 2013/2014 sugarcane crop year. The company's pressed sugar output is still quite low, reaching just over 1,400 tons.

Sugar inventories in factories remain high.
(Photo: Saigon Marketing)

However, the amount of sugar remaining in stock from the previous crop of the entire sugar industry is still quite high. As of July 26, the inventory at sugar factories was 389,595 tons (including raw sugar and new crop inventory of Nuoc Trong Sugar Factory), and at trading companies under the Sugar Association was 16,536 tons.

The release of large sugar inventories from the previous crop continues to face many difficulties, as informal exports to China have slowed down due to heavy rains in recent days, and especially the Ministry of Industry and Trade has not announced an extension of the export period, so traders are having to temporarily stop bringing sugar to the border gate. Meanwhile, according to the Ministry of Agriculture and Rural Development, the amount of sugar produced by factories in the new crop will ensure sufficient supply and surplus from November 2013.

In the four months of July, August, September and October, the total amount of sugar consumed domestically was only about 270,000 tons. If the consumption level in 2013 remains the same as last year, the amount of sugar in stock (as of mid-June, 492,510 tons) will be about 220,000 tons more than the consumption demand. If the circulating sugar inventory is kept at about 100,000 tons, the amount of sugar in surplus will be about 120,000 tons. That does not include the minimum amount of sugar that will have to be imported according to WTO commitments.

Therefore, although many factories will not start the new pressing season until the end of this month, from now on, the pressure to consume sugar inventory continues to weigh heavily on the sugar industry. Especially when smuggled sugar from Thailand continues to flow into our country through the southwestern border, the Vietnam - Laos border, at a price much cheaper than the domestic wholesale sugar price.

At the end of July, the wholesale price of white sugar in Hanoi was 15,000-15,200 VND/kg, in the Central region 15,000-15,300 VND/kg, in Ho Chi Minh City 14,500-14,800 VND/kg and in Can Tho 14,700-15,000 VND/kg. Meanwhile, the price of smuggled sugar in Lao Bao was only 13,700 VND/kg, in Dong Ha 14,500 VND/kg, at the Southwest border 13,700-13,900 VND/kg and in Ho Chi Minh City 14,300-14,500 VND/kg.

To reduce the pressure from sugar inventory and surplus, at the end of July, the Ministry of Agriculture and Rural Development sent a dispatch to the Ministry of Industry and Trade on the consumption of excess sugar. Accordingly, the Ministry of Agriculture and Rural Development requested the Ministry of Industry and Trade to create favorable conditions for commercial enterprises and sugar factories to coordinate in exporting all excess sugar, helping sugar factories recover capital to prepare for the next production season./.

According to (VOV) - LC