In October, some sugar factories in the Mekong Delta are expected to enter the crop season, but sugar consumption is facing difficulties, so they may have to postpone the crop season later than planned. If the situation of smuggled sugar is controlled, sugar prices in the month may remain stable or recover slightly.
According to the Vietnam Sugarcane and Sugar Association (VSSA), entering the months before the crop season, wholesale sugar prices in the market tend to increase slightly.
Wholesale prices of white sugar in September were at VND 11,800 - 12,500/kg, up about VND 100 - 200/kg compared to the previous month, but up 10% compared to the beginning of the year and the same period last year. Refined sugar was at VND 12,600 - 12,900/kg, up about 6.7% compared to the beginning of the year but down slightly by about 3% compared to the same period last year.
Domestic sugar prices in September. Source: VSSA
In October, some sugar factories in the Mekong Delta are expected to enter the crop season, but sugar consumption is facing difficulties, so the crop season may have to be postponed later than planned.
The General Department of Market Management (Ministry of Industry and Trade) launched a peak period of inspection of compliance with legal regulations on sugar trading at the end of 2019.
The expected implementation period is from September 15 to December 31, 2019 in the Central and Southern provinces. If smuggling and trade fraud are controlled, sugar prices in the market in October are likely to maintain and recover slightly, VSSA said.
At the end of September, the Executive Board of the Vietnam Sugarcane and Sugar Association recommended that member enterprises implement sugarcane purchase prices and sugar selling prices for the 2019-2020 crop year.
Enterprises should work with farmers to build sugarcane purchase prices that fully cover the incurred costs, plus about 10% so that farmers can survive and continue growing sugarcane, depending on the actual situation in the locality.
The International Sugar Organization (ISO) also estimated that in the 2018/2019 crop year ending at the end of September 2019, the world had a surplus of more than 1.7 million tons of sugar.
According to vietnambiz.vn