Sale of sugar has been facing difficulties since the beginning of October, causing problems for sugar producers in recent days. (Photo: VNA)Hanoi (VNA) - The sale of sugar has been facing difficulties sincethe beginning of October, causing problems for sugar producers in recent days,according to the Sugar and Sugarcane Association.
Pham Quoc Doanh, the association’s Chairman, said sugar plants produced some10,000 tonnes sugar from October 10, plus 300,000 tonnes inventory. However, itwas difficult to sell even one kilo although sugar prices were low -- nearing12,000 VND per kilo -- and despite increasing demand for sugar for the productionof goods for the upcoming Tet (Lunar New Year) holidays.
Doanh said firms appeared to be waiting until early 2018 to purchase sugar atlow prices. Under commitments of the ASEAN Trade in Goods Agreement (ATIGA),from 2018, there will be no cap on sugar imports from member countries, withimport tax rate at 5 percent.
Doanh was worried this would cause sugar prices to dip, pushing sugarproducers into a lot of difficulties, especially small-sized plants that couldface the risk of shutting down.
The association previously proposed the Prime Minister extend the time forimplementing ATIGA’s commitments from 2018 to 2020, or even 2022.
In addition, the association proposed that the tax rate for sugar import out ofquota should be reduced by 50 percent to 40 percent for raw sugar and 45 percentfor refined sugar.
In response, the Prime Minister asked relevant ministries to consider theassociation’s proposals and submit its report before October 30.
Sugar plants are preparing to harvest the 2017-18 crop, which will begin inearly November.
There are 41 sugar plants with total designed capacity of some 150,000 tonnesper day. In the 2016-17 crop, more than 1.2 million tonnes sugar were produced.
In the first nine months of this year, Vietnam exported 43,000 tonnes of sugar,worth 20.6 million USD, to 28 markets, according to the association’sstatistics. -VNA
VNA
