HCMC - Vietnam’s sugar prices will stay stable until the end of September when the 2010-2011 sugar-cane crop starts, according to the Vietnam Sugar Association.
The general secretary of the association, Ha Huu Phai, said there had been nearly 127,000 tons of sugar in the country’s stock as of August 15.
The last months of the year would not see a sugar shortage as the Mekong Delta would start their 2010-2011 sugar crop from September 15; and other provinces would enter their crops in late October at the latest.
Statistics of the sugar association show 46,100 tons of sugar was sold in the market from July 15-August 15, while more than twice as much, or 100,000 tons, was sold at the same time last year to meet the demand of mid-autumn festival cake bakers.
Phai said the fall in sugar sales during the mid-autumn festival this year was due to the Ministry of Industry and Trade allowing confectionary and soft drink producers to import sugar to make up the 2010 import quota of 300,000 tons.
The move had aimed to help stabilize consumer prices.
“The Ministry of Industry and Trade must find ways to urge those businesses that are allowed to import sugar to import their full allocated amount so that sugar prices stay steady,” Phai said.
However, there have been fluctuations in sugar prices since the beginning of the year. The sugar price in the world market reached US$900/ton at the end of 2009, then suddenly dropped to US$470/ton in March 2010. While many businesses have yet to import sugar, the price surged to USD800/ton in July.
According to Pham Thi Sum, management board chairwoman of the Bien Hoa sugar joint stock company, due to the low volume of sugar left in ASEAN countries, Vietnamese businesses must import sugar from Brazil or other South American countries with the tariff of 30-40%. Sugar imported from those countries would be sold at over VND18,000/kg, an increase of VND1,000 compared with the current price.
The association anticipates the 2010-2011 sugar crop will yield around 900,000 tons comparable to the 2009-2010 crop, meaning Vietnam would also need to import 300,000 tons in 2011.
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