Low sugarcane prices discourage farmers from investing in and caring for their crops.

June 26, 2013 14:16

(Baonghean)Low sugarcane prices, worse than last year, coupled with rising investment costs, have discouraged many sugarcane farmers in Con Cuong and Anh Son from investing in sugarcane cultivation…

It is known that in sugarcane production, "sugar content" is very important, serving as a measure and determining the purchase price; the higher the sugar content, the higher the price of sugarcane. However, many sugarcane farmers still do not pay attention to sugar content, because many sugarcane fields with increased sugar content still end up losing money due to low sugarcane prices.

For a long time, Hamlet 2/9 in Chau Khe Commune, Con Cuong District, has been considered one of the best sugarcane farming areas in the Song Lam Sugarcane Company's raw material region. However, in recent years, sugarcane farmers have lost interest in investing in sugarcane. When we visited Hamlet 2/9, we noticed that most of the sugarcane fields had thin, stunted stalks.

Ms. Phan Thi Ly from village 2/9 said: "My family cultivates 8 sao (approximately 0.8 hectares) of sugarcane, but due to the low sugar prices this year, the sugarcane price was also low, resulting in a loss for the last sugarcane crop. Specifically, we harvested 30 tons of sugarcane from 8 sao, with a sugar content of only 8 CCS, so the price was a low 800,000 VND per ton." According to Ms. Ly, investing in one sao of sugarcane requires more than 60 kg of urea fertilizer and over 150 kg of NPK fertilizer, but she only invested in 20 kg of urea fertilizer and over 60 kg of NPK fertilizer per sao. This year, the investment in fertilizer was less than in previous seasons, and the prolonged drought means that the sugarcane yield will be low next season.

Mr. Nguyen Van Thin, while tending to his sugarcane plants, confided: “According to regulations, three plots of sugarcane should have three fertilizer applications and two nitrogen applications by this time, but we've only managed to apply NPK fertilizer 'in small amounts' twice in total, about 40 kg of NPK per plot, and one application of 15 kg of nitrogen, with the rest being supplemented with manure. Although we know that investing according to proper sugarcane cultivation procedures will yield high productivity, we're still afraid that low sugarcane prices will lead to losses even with investment.”



Ms. Lu Thi Hoi and her husband, from Boong village, Lang Khe commune (Con Cuong district), are tending their sugarcane crop.

Ms. Lu Thi Hoi from Boong village, Lang Khe commune, Con Cuong district, said: "In the last sugarcane crop, my family cultivated 2 sao (approximately 0.2 hectares) and achieved 7 tons of sugarcane with a sugar content of 9.2 CCS. The factory bought it at 860,000 VND/ton. The sugarcane is now 5 months old. Normally, weeding and hilling the rows three times is necessary to ensure good ventilation, faster growth, and reduced pests and diseases. However, most farmers here only weed once. This method reduces investment costs because each hilling is followed by fertilization. As for Ms. Hoi, she didn't apply nitrogen fertilizer this entire sugarcane season, instead investing that nitrogen in her 3 sao of rice."

Mr. Nguyen Thanh Binh, Chairman of the Chau Khe Commune People's Committee, added: Chau Khe has 94 hectares of sugarcane. For a long time, the commune has identified sugarcane as its main crop. However, due to low sugarcane prices, many farmers are currently hesitant to invest in sugarcane cultivation. The commune has proposed that more policies are needed to stabilize sugarcane production. In particular, the sugar factory needs to invest in building access roads to facilitate sugarcane harvesting and cultivation. The consumption process must ensure a profitable price range for sugarcane growers.

In Anh Son district, farmers are investing very sparingly in this sugarcane crop. Mr. Ho Nhuong from Thanh Son commune (Anh Son district) said: “My family planted 7 sao (approximately 0.7 hectares) of sugarcane, but this season we haven't received a loan from the factory to buy fertilizer. The price of sugarcane dropped last season, and with limited investment capital, my family doesn't dare to invest heavily in caring for the crop.” It is known that Thanh Son commune has over 120 hectares of sugarcane, and this season many farmers have not yet received loans from the sugar factory to buy fertilizer. Compared to rice and other crops, sugarcane is a long-growing crop, taking a whole year to harvest, while income is not yet stable, so farmers are eagerly awaiting investment from the sugar factory.

Mr. Le Dinh Vinh, Deputy Head of the Agriculture Department of Con Cuong District, added: "The entire Con Cuong district has over 300 hectares of sugarcane concentrated in the communes of Chau Khe, Lang Khe, Chi Khe... For a long time, Song Lam Sugarcane Joint Stock Company has only provided support with bio-fertilizer produced by the factory, while many households need investment capital to invest in production such as buying more fertilizer, plowing land, and pesticides... Not to mention that the sugarcane growing area in Con Cuong needs the factory to invest in transportation infrastructure for raw materials."

Mr. Tran Dinh Duc, Director of Song Lam Sugar Company, said: "Currently, the company's raw material area covers over 1,700 hectares of sugarcane. During the 2012-2013 crushing season, the company faced many difficulties due to low sugar prices. For the 2013-2014 sugarcane season, the company made efforts to provide loans of over 11 billion VND for one year with an interest rate below 10% per year to the raw material area, and provided 200 tons of fertilizer as non-refundable support to sugarcane growers. However, we have not yet been able to invest widely."

Currently, the Ministry of Agriculture and Rural Development has required all sugar factories nationwide to purchase sugarcane based on sugar content. Therefore, improving sugarcane quality is essential for sugarcane farmers to make a profit. Sugar factories need to actively support sugarcane farmers, such as providing preferential loans, stable purchase agreements, and stable prices for three consecutive years. They should also invest in science and technology, introduce new varieties for testing, etc., so that farmers have the conditions and confidence to invest in and care for their sugarcane crops to increase productivity.


King Tran