Domestic sugar industry needs support from appropriate policies

Domestic sugar industry needs support from appropriate policies

The prerequisite for the maintenance and sustainable development of the sugar industry is to ensure the stability of the raw material area. However, in recent years, the raw material area has seen an alarming decrease. According to experts, it is essential to have radical solutions for the domestic sugar industry to develop sustainably and be strong enough to compete.
Why imported sugar cheaper than domestically-produced one?

Why imported sugar cheaper than domestically-produced one?

From 2020, Vietnam implements the ASEAN Trade in Goods Agreement (ATIGA) to reduce import tariffs on sugar. Domestic sugar refineries were happy that when the official import of sugar increases, they can compete and restrict smuggled sugar. However, the joy did not last long, imported sugar is cheaper than domestically-produced one, making many sugar refineries continue to suffer losses, and farmers stop growing sugarcane.
Farmers grow sugarcane in Hau Giang Province. (Photo: SGGP)

Imported sugar hurts its domestic counterpart

The Vietnam Sugarcane and Sugar Association (VSSA) informed that there is enough evidence of dumping of imported sugar in the Vietnamese market, causing dozens of sugar refineries to close or halt operation. In the coming time, there will be more sugar refineries to suffer the same situation.
Vi Thanh Sugar Refinery has to close due to a shortage of material sugarcane. (Photo: SGGP)

Unstableness of domestic sugar industry

Farmers in the Mekong Delta have started to harvest raw material sugarcane from the beginning of October. However, up to now, the remaining three factories in the region have not operated yet. Currently, farmers mainly sell sugarcane for traders to resell to sugarcane juice vendors. Ironically, both farmers who sell sugarcane early to benefit from high prices and those who have not harvested sugarcane yet want to give up sugarcane to switch to other crops.
Sugarcane prices higher for making juice than making sugar

Sugarcane prices higher for making juice than making sugar

Sugarcane farmers in the Mekong Delta Province of Hau Giang are joyous because traders from Can Tho City and Ho Chi Minh City have been offering higher prices for their produce, said Tran Van Tuan, Head of the Department of Agricultural and Rural Development in Phung Hiep District, today.
The area of sugarcane in the Mekong Delta is reduced sharply. (Photo: SGGP)

Mekong Delta farmers destroy thousands of hectares of sugarcane

In recent days, although it is entering the new crop of sugarcane, many farmers in the Mekong Delta provinces have chopped down thousands of hectares of sugarcane due to ineffective and loss-making production to switch to grow other crops.
The ASEAN Trade in Goods Agreement creates huge pressure on the domestic sugar industry. (Photo: SGGP)

Vietnam’s sugar industry expected to face more difficulties this year

According to the Vietnam Sugarcane and Sugar Association (VSSA), the country produced 1.47 million tons of sugar in the 2017-2018 crop and in the 2018-2019 crop, the production dropped to 1.17 million tons with the area of sugarcanes reducing by 30-60 percent compared to the previous years and 17 out of 30 sugar refineries suffering losses.