Vietnam sugarcane prices are among the highest one in the world

Update: 10/22/2013

According to Nguyen Hai, general secretary of Vietnam Sugar Association ( VSSA ) , the cost structure in the domestic sugar , sugarcane accounted for about 70 %, particularly in Vietnam this rate to 75-80 % .
Sugar cane is grown in Vietnam with the water quality ( CCS sugar Vietnam average of about 10 , while the country CCS 12-16 ) , but the one of the highest rates in the world. In the last season , cane sugar factory price purchase of farmers about $ 50 a tonne , while the oscillating water 24-30 dollars a ton .
Productivity , quality low cost cultivation caused many high raw sugar prices , leading to increased sugar production costs . In addition, the area under sugarcane cultivation small . Land in the western lowlands , and Central and Northern Highlands largely hilly , difficult mechanization to reduce labor costs . On the cultivation and fertilization , farmers have not done properly and not just respond to cane yield and quality .
In addition, the sugar industry has not been supported by the State in accordance with the same policies of other countries , such as the same support , infrastructure for transportation , irrigation ... sugar industry policy should also support and encourage the exploitation of by-products , such as the exploitation of renewable energy from sugarcane bagasse to supply the national grid .
VSSA Secretary said the country is in surplus 646,000 tons of sugar , part road accidents caused by illegal cheap still raging . In this position , enterprises need to reduce production costs , and increase farmer productivity and quality of sugarcane to reduce material costs .
If the interest of a hectare , farmers mostly a collection of about 15-20 million ha in one year , some 20-30 million and very few places to take a 50 million ha .
According to VSSA , in the past , the sugar mills have price protection for farmers of sugarcane for 2012-2013 sugar prices down despite very low . Sugarcane crops are sugar factories which is 100% of target farmers maintain crop . " If prices for 2013-2014 continue down the road , cane price certainly can not be maintained as the previous crop anymore ," Hai said .
- The price of domestic consumption of white sugar around 14200-15400 dong per kilogram ( on 10.14.2013 , wholesale prices including VAT ) , depending on the locality and the quality . According to VSSA , this sugar is consumed slowly , if sales are lower, then the plants will suffer losses .
- Contraband sugar lower domestic prices to dominate the market , around 13100-14300 dong per kg ( dated 10/14/2013 ) depending on the locality.
- Price of world trade is now about 500 USD per ton ( price traded on 10.10.2013 , delivered in 12/2013 in the London market ) .
Source: - Thanh Thanh
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