According to the Vietnam Sugarcane and Sugar Association, the current sugar price is reasonable, ensuring the goal of harmonizing the interests of all parties involved. However, it is also necessary to avoid further increases in sugar prices to protect the interests of the sugarcane industry and consumers.
The Vietnam Sugarcane and Sugar Association recommends that its members maintain the current sugar selling price at a reasonable level, ensuring the goal of harmonizing the interests of all parties involved (Illustration: Duyen Duyen)
According to information from the International Sugar Organization (ISO), the first half of July 2023 showed an upward trend in the raw and white sugar commodity price index. Information about lower-than-expected sugar recovery in Brazil and uneven rainfall in India could reduce sugar supplies, combined with the depreciation of the US dollar, could be the cause of this price increase.
Spot raw sugar prices (measured using the ISA daily price) averaged 23.64 US cents/lb, down from 24.52 US cents/lb in June 2023 and 25.40 US cents/lb in May 2023. The ISO White Sugar Price Index averaged 672 US cents/lb, up from 670.88 US cents/lb in June 2023 and down from 701.90 US cents/lb in May 2023.
According to data from tradingeconomics.com tracking sugar prices over the years, with sugar price developments in July 2023, although it decreased compared to June 2023, the world raw sugar price in the month was still at its highest level in the past 12 years.
Regarding the domestic sugar market, according to the Vietnam Sugarcane and Sugar Association, in the first half of July 2022, supplies were abundant as the 2022-2023 crushing season had just ended, especially smuggled sugar from the border provinces of Quang Tri, Tay Ninh, Long An , and Binh Phuoc, flooding the market after a period of lull due to the tightening of border controls by authorities. In addition, imported liquid corn syrup also appeared and narrowed the output of sugar produced from sugarcane. In the second half of July 2023, demand was not high, and imported sugars such as Myanmar sugar, Malaysian sugar, and smuggled sugar increased their presence in the market.
Domestic sugar prices fluctuated at the following levels: On July 4, in Hanoi , white sugar fluctuated from 20,000-20,900 VND/kg, refined sugar 21,400-22,000 VND/kg; meanwhile, in the Central region, white sugar cost 19,800-20,400 VND/kg, refined sugar 21,200-21,800 VND/kg; in Ho Chi Minh City, white sugar cost 20,000-20,800 VND/kg, refined sugar 21,400-22,200 VND/kg.
As of July 25, in Hanoi, the price of white sugar was 20,000 - 21,000 VND/kg, refined sugar was 21,400 - 22,000 VND/kg; in the Central region, the price of white sugar was 20,000 - 20,800 VND/kg, refined sugar was 21,400 - 22,000 VND/kg; in Ho Chi Minh City, the price of white sugar was 20,000 - 21,000 VND/kg; refined sugar was 21,400 - 22,200 VND/kg.
Meanwhile, comparing sugar prices with some countries in the region, on average at some points in July, the average price of Philippine sugar was 34,981 VND/kg, China 22,708 VND/kg,... while the average price of Vietnamese sugar was 21,056 VND/kg.
Thus, in July 2023, compared to domestic sugar market prices in the region including sugar cane producing countries of the ATIGA bloc and China, Vietnam's sugar prices, although increasing, are still lower.
Notably, according to the Vietnam Sugarcane and Sugar Association, recently, there have been fluctuations in sugar prices, showing signs of hoarding and price increases by some units, leading to sugar prices being pushed beyond a reasonable level for consumers if this trend continues.
Faced with this situation, the Vietnam Sugarcane and Sugar Association has reported to the Ministry of Agriculture and Rural Development. Accordingly, in the 2022-2023 crushing season, the Vietnamese sugar industry has achieved the dual goal of raising sugarcane purchasing prices to a level equivalent to that of countries in the region while still maintaining sugar prices at a level equivalent to and lower than those of neighboring sugarcane-producing countries. Regarding the current sugar price, according to the assessment of the Vietnam Sugarcane and Sugar Association, this is a reasonable price that ensures the goal of harmonizing the interests of all parties involved.
Regarding this issue, Mr. Nguyen Van Loc - Chairman of the Vietnam Sugarcane and Sugar Association emphasized that currently, Vietnam's sugar price is at a reasonable level, meaning that this sugar price can help to purchase sugarcane at a price that is beneficial to farmers.
“This year the price of sugarcane is good and the yield is also good, so this year sugarcane farmers and sugar factories are both excited,” said Mr. Loc.
Mr. Loc also said that before the current sugar price, the Association had asked the factory to increase the sugarcane purchase price for farmers. And when the sugarcane price was increased, farmers were very excited.
In order to avoid the unreasonably increasing sugar prices, the Vietnam Sugarcane and Sugar Association recommends that its members participate in stabilizing the market by supplying sugar to the market according to demand and maintaining the current sugar price at a reasonable level, ensuring the goal of harmonizing the interests of all parties involved. In particular, do not let the sugar price increase further to protect the interests of themselves and consumers on the basis of harmonizing interests and absolutely do not carry out or assist in acts of hoarding and price hikes.
Currently, the Vietnamese sugar industry is preparing for the 2023-2024 sugarcane pressing season. Reality also shows that a stable sugar market is an important factor in ensuring the output of the sugarcane-sugar production chain./.
BT/www.dangcongsan.vn
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