Ministry allocates sugar quotas

August 08, 2012 | 16:50

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Instead of inviting bids from companies, the Ministry of Industry and Trade has set individual sugar import quotas of 70,000 tonnes this year for food processing enterprises.

Sugar is packaged by the wholly foreign-invested KCP Sugar and Industries Co Ltd in the central province of Phu Yen.

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Phan Thi Dieu Ha, deputy head of the ministry's Import-Export Department, announced the quotas at the meeting held in Hanoi on Monday.

50,000 tonnes will be allocated for enterprises that rely on sugar for their production, while the remaining 20,000 tonnes will be distributed to businesses selling to customers.

Ha did not reveal the number of businesses that were assigned the quota.

The Vietnam Sugar and Sugarcane Association (VSSA) previously proposed to scrap the system of setting individual sugar import quotas for food processing enterprises to create transparency while ensuring steady demand for sugar.

In response to the proposal, she said the department has received the VSSA's suggestion and exchanged ideas with the Multilalteral Trade Policy Department which was in charge of importing sugar.

She said under the WTO commitment, the import would have to be allocated into the quota. If the industry wanted to shift from the quota system to invite for bids, it would have to negotiate with WTO's member countries.

She added that the two departments would continue to research the proposal.

The Ministry of Agriculture and Rural Development allowed Vietnamese companies to import 70,000 tonnes of sugar this year despite sufficient supply in the domestic market in order to keep up with WTO commitments.

VNS

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