Sugarcane prices continue to fall, farmers turn their backs on sugarcane

The reduction in sugarcane acreage will cause sugar factories to lack raw materials in the future and have to close down.

Currently, the price of sugarcane in many areas of Soc Trang province is continuously decreasing, causing many farmers to worry when the sugarcane crop is entering harvest. This situation has led to many sugarcane growers having to harvest early to reduce care costs and switch to growing other crops. The reduced sugarcane area will cause sugar factories to lack raw materials in the future and have to close down. This will affect the general planning of the locality.

Sugarcane prices in many areas of Soc Trang province continue to decrease, farmers are worried (Illustration photo/TNO)

In Cu Lao Dung district, one of the localities with the largest sugarcane growing area in Soc Trang province with 8,000 hectares. Entering the harvest season this year, the price of sugarcane has dropped, making many farmers worried.

Sugarcane prices in many areas of Soc Trang province continuously decrease, farmers are worried

The price of sugarcane purchased by traders at the field is about 600 - 650 VND/kg, about 70 VND/kg lower than the previous crop. With this price, sugarcane growers will find it difficult to make a profit. Mr. Nguyen Van Ut Chinh, in An Thanh 2 commune, who has just harvested 3,000 m2 of sugarcane out of 6,000 m2 being planted, lamented: "This year's sugarcane harvest, most people do not make a profit because the price of sugarcane purchased by the factory is very low. Currently, the factory buys 10-character sugarcane for only 900 VND/kg, and the price at the field is only 560 VND/kg. Meanwhile, the input cost is about 7.2 million VND/cong of sugarcane. Sugarcane yield is only about 10 tons/cong. Therefore, the harvest is only 5-6 million VND/cong."

Sharing the same situation as Mr. Ut Chinh is Mr. Huynh Van Luot. After many months of care and investment, Mr. Luot lost 3 million VND/ha of sugarcane he just harvested. Mr. Luot said: "The price of sugarcane this year is generally unstable. If you count the investment costs such as fertilizer and rent, the loss is about 3 million VND/ha."

Normally, Cu Lao Dung district only enters the main sugarcane harvest season at the Lunar New Year. Low sugarcane prices, factors such as low-yielding varieties, weather effects, and high tides make sugarcane growers reluctant to invest in care. Currently, many farmers harvest early when sugarcane has not reached the sugar content to switch to other crops with higher economic value.

Mr. Nguyen Van Ve, Chairman of the People's Committee of An Thanh 2 Commune, Cu Lao Dung District, said: "Sugarcane output this year may decrease compared to last year, due to low sugarcane prices, people have limited investment in sugarcane."

According to the agricultural sector of Cu Lao Dung district, this year's sugarcane crop has been planted on more than 8,000 hectares, and more than 100 hectares have been harvested so far. Currently, sugar factories have purchased over 80% of the district's sugarcane area at a floor price of VND830/kg. However, at this price, sugarcane growers will not make a profit, so they will turn their backs on sugarcane to choose other crops. And this means that sugar factories will lack raw materials to operate in the future. It seems that the problem of stabilizing sugarcane prices in Soc Trang still has no solution.

According to VOV