Imported sugar dominates the market

It is forecast that there will be no shortage of sugar in June 2021 and July 2021. Illustrated photo. Source: VietnamPlus

According to a report by the Vietnam Sugar Association (VSSA), in May 2021, the situation of trade fraud and sugar smuggling took place, despite the increase in border controls to prevent the Covid-19 pandemic.

Specifically, on May 15, 2021, Ho Chi Minh City Police in collaboration with the Market Management Department discovered more than 140 tons of sugar of unknown origin in parking lots in Hoc Mon and Binh Tan districts. All shipments are undocumented.

Drivers who claim to receive goods from Binh Duong and Dong Nai gather at the Ho Chi Minh City parking lot. Currently, all the shipments are being detained by the authorities for further investigation.

“In May 2021, sugar imported from ASEAN countries (evading anti-dumping and anti-subsidy taxes) and smuggled sugar from Cambodia and Laos completely owned the market, making sugar produced from domestic sugarcane difficult to consume," said VSSA.

Currently, the sugarcane season has ended. Official sugar imports from Thailand and ASEAN countries continue to enter the country, plus commercial fraud and illegal import continue to bring a large amount of sugar into the Vietnamese market.

According to data from the General Department of Customs, the amount of imported sugar into Vietnam from all sources in the first four months of 2021 has increased by more than 1.5 times, with an amount of nearly 540,000 tons compared to the same period last year at 341,000 tons.

A representative of VSSA said that imported sugar completely dominated the market despite border controls on smuggled sugar.

Sugar supply is sufficient to meet market demand. Because imported sugar is dominating the market, domestic sugar prices tend to follow world sugar prices.

VSSA forecasts that sugar imports from Thailand and ASEAN countries will continue to increase in June 2021 and smuggled sugar will remain active. In addition to the sugar produced from domestic cane which is in stock and consumed slowly, there will be no shortage of sugar in June and July 2021.

Regarding the development of Vietnam's sugar industry, Mr. Nguyen Quoc Toan, Director of the Department of Agricultural Products Processing and Market Development (MARD), said that the sugar industry is entering a new stage of development, requiring a new attitude. It is the initiative of both state management agencies to keep up with market signals.

Recently, the Ministry of Agriculture and Rural Development has coordinated with the Ministry of Science and Technology to have a program to develop the national science and technology market and prepare to submit to the Prime Minister.

Priority content and selection of investment sources are directly related to issues of deep processing technology, including sugar cane. This is a priority for financial resources and a priority for policy.

“Besides, we reported to the leadership of the Ministry to have a working session with the State Bank of Vietnam. The problem is, the trade policy for sugar mills is suitable for the rotation of the harvest cycle, in accordance with the capacity of the sugar mills, in line with the subject of the farmer,” said Mr Toan.

Leaders of the Department of Agricultural Product Processing and Market Development said that the Ministry of Agriculture and Rural Development is submitting to the Prime Minister a decree on agricultural mechanization. This will be a very important legal corridor to promote mechanization and deep processing activities, including the sugar industry.