Sugar production hopes dissolve away

April 28, 2011 | 08:00

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As of April 15, 2011 16 out of 38 sugar factories across the country must halt production as the supply far outpaced the demand in the domestic market.

By April 30, there were only eight sugar factories keep operating in the central region and Central Highlands’ areas, according to a Ministry of Agriculture and Rural Development report.

Sugar factories turned out 1.03 million tonnes of sugar so far the year, up 163,200 tonnes over corresponding period in 2010. Vietnam imported 29,000 tonnes of sugar in the first three months of 2011, down 2,000 tonnes on-year, the report read.

To support local sugar factories, the Ministry of Industry and Trade (MoIT) is considering delay of sugar imports until July, 2011 for import quotas which are yet to sign contracts or open letters of credit (L/Cs) to import sugar.

In February, MoIT gave licences to 24 enterprises, allowing them to import 250,000 tonnes of raw and refined sugar this year, down from 300,000 tonnes in 2010.

According to Vietnam Sugar Association, current production cost for 1kg of sugar is around VND12,000 in the north and VND15,000 in the south. One kilogramme of grade one refined sugar (value added tax included) at factories in the north and the central region fetches around VND18,000.

Sugar is currently retailed at between VND21,000 ($1.01) and VND23,000 ($1.11) per kilogram, VND1,200-2,000 cheaper than at the beginning of March.

By Lien Thuy

vir.com.vn

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