Vietnam Sugarcane and Sugar Association (VSSA) said that the total amount of sugar inventories was about 200,000 tonnes in Vietnam and about 17 million tonnes all over the world. This number will continue to increase when factories come into 2012 – 2013 new pressing seasons.
Currently, sugar sell price in factories is only about 15,000 dong - 15,700 dong per kilogram, but it is very difficult to sell due to smuggled sugar from Thailand and neighbouring countries. Nevertheless, sugar price in the near future is forecast to remain hard and reach over 16,000 dong/kilogram.
Nguyen Thanh Long, VSSA’s President said that: Sugar redundancy led to falling selling price and a low sugarcane buying price. If sugarcane is bought at the price of 1,000 dong/kilogram, factories will be at risk of break even or at a loss.
In addition, the currently prolonged sugar smuggling situation while the government still does not have effective solution, raw sugarcane price will not be improved, which is causing many difficulties for enterprises as well as sugarcane farmers.