3:26:38 PM | 7/8/2005
Sugar prices in Vietnam have increased strongly against those in early April and are currently at the highest levels so far, trading at VND7,000-7,500, up VND500-1,000 a kilo, according to the Vietnam Sugarcane and Sugar Association (VSSA).
The prices of various sugar products have nearly doubled the minimum level fixed by the VSSA earlier this year, it said, adding that the sugar price hike is attributed to a sugarcane shortage and high demand for sugar in summer.
According to statistics from the association, sugarcane output for the 2004-05 crop has dropped by 1.5 million tons leading to a decrease of 176,000 tons of sugar.
Pham Thi Sum, the chairwoman of the Bien Hoa Joint-stock Sugar Company's management board, said many sugar cane growers have shifted to cassava. And to compound matters, producers and traders have stockpiled sugar in anticipation of rising sugar prices.
The association's chairman, Le Van Tam, urged members to continue to sell sugar and pledged to offer a reasonable market price. Mr Tam added that producers are still able to supply about 90,000 tons of sugar per month, so it is not necessary to resort to imports.
To stabilise the market, the association has requested members to continue to sell sugar and pledged to offer a reasonable market price. However, some members said the sugar shortage would worsen in the coming months.
To deal with the sugar price hike, caused by a sugar cane shortage and speculation in the face of rising demand, the Ministry of Agriculture and Rural Development is considering allowing imported sugar next month.
In related news, the Quang Binh, Quang Nam and Ninh Thuan sugar plants are to file for bankruptcy as their losses have exceeded capital.
The Quang Binh and Quang Nam sugar factories are both located in areas without sugarcane crops. Lacking materials, the two plants ceased operations two years ago. The plan to move the factories to the Mekong Delta was scrapped, as the destination area is also in short sugarcane supply. The Binh Thuan Sugar Plant has been scaled back to just 30 per cent of its operating capacity after organisational changes.
The People Online, VNA
Vietnamese
