The sugarcane sector is facing record-low prices despite an increase of 500,000 tonnes of output over last year, leading to high inventory levels, according to the Viet Nam Sugar and Sugarcane Association (VSSA).
The sugar industry needs to restructure to compete with rivals in other countries such as Thailand, according to the Viet Nam Sugar and Sugarcane Association.
The sugar and sugarcane sssociation has proposed to the PM not to allow an extension for temporary sugar imports for re-export as the sweet industry was struggling with high stockpiles and slumping prices due to illegally imported sugar.
The huge volume of cheap sugar smuggled in from Thailand is among the key reasons for high inventories at sugar factories, according to the Viet Nam Sugar and Sugarcane Association.
Authorities'' efforts to crack down on contraband and a simultaneous rise
in demand have sent sugar prices soaring by 10 per cent in the three
weeks since Tet.
Several sugar companies are saddled with increasing inventory because of
imported and smuggled sugar, according to figures from the Ministry of
Agriculture and Rural Development.
The Viet Nam Sugar and Sugarcane Association (VSSA) has asked Prime
Minister Nguyen Tan Dung to only allow the export of domestically
produced sugar in order to help local producers.
The local sugar inventory has snowballed to a record high of over
600,000 tonnes, according to Chairman of Viet Nam Sugar and Sugarcane
Association (VSSA) Nguyen Thanh Long.