According to the Vietnam Sugar Association (VSSA), up to December 15, the mills pressed about 321,300 tons of sugarcane, producing nearly 27,150 tons of sugar in the 2019-2020 production season.
Regarding sugar price movements, information from the World Sugar Organization ISO said the world sugar price on December 13 reached 357.6 USD / ton for white sugar and 13.56 cents / lb for raw sugar.
Wholesale prices on the domestic market fluctuate depending on the quality of sugar such as quality and grain size.
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Sugar price movement in December. Source: VSSA
In the Mekong Delta, Phung Hiep and Soc Trang sugar mills have adjusted sugarcane prices to increase from 760,000 VND / ton of sugarcane in the field to 800,000 VND / ton of sugarcane. Shipping cost is about 80,000 VND – 100,000 VND / ton depending on distance.
In Thanh Hoa, the price of sugarcane at the beginning of the crop is 820,000 VND / ton in the field, if supported, it increases a little more, transportation costs are quite high, up to 100,000 VND / ton depending on the distance of the shipment.
Sugar mills in the late November and early December have applied or adjusted the sugarcane price of 10 CCS to the field to 800,000 VND / ton, not to mention a number of sugar factories also have policies to encourage sugarcane prices. conditions and situation of each unit.
Especially, sugarcane in investment contracts such as La Nga sugarcane price at 830,000 VND / ton, sugar cane far from the price at the plant scale up to 1,010,000 VND / ton.
Thai smuggled sugar prices in the first half of December 2019 in some cities including Ho Chi Minh City fluctuated between VND 11,600 – VND 11,900 / kg, cities and towns in the Central region ranged from VND 11,500 to VND 11,700 / kg, Hanoi. and cities around Hanoi around 11,500 – 11,700 VND / kg.
According to VSSA, world sugar price in the beginning of December 2019 tended to increase, raw sugar on the New York trading floor exceeded 13 cents / lb, and by 12/12 reached nearly 13.6 cents / lb. White sugar on the London floor to December 6 exceeded 350 USD / ton, to 13/12 reached 357.6 USD / ton.
In general, the price of sugar is on the rise but not high enough to affect the domestic market of Vietnam, while the domestic market of Vietnam is heavily affected by smuggled sugar and commercial fraud.
Specifically, the price of sugar did not fluctuate despite the fact that the Investigation Police Agency (C03) of the Ministry of Public Security broke the organized crime line to smuggle white sand sugar from Cambodia to Vietnam. December 3, 2019 in An Giang.
In addition, the consumption situation seems to slow down, the market information said that the reason may be partly due to the demand did not increase, but most of the assessment is due to strong smuggled sugar, abundant supply and storage of smuggled sugar. Abundant in the market.
“Currently smuggled sugar is sold throughout the provinces and rural areas throughout the country, unlike in the past, only a few provinces and cities are favorable for smuggled sugar. People also found areas around Ho Chi Minh City and the neighboring provinces of smuggled sugar. small vans to sell around like fruit vans, “Vietnam Sugar Association said.
In addition, the 2019-2020 sugarcane crop is slower than the previous crops, most of the sugar mills in this crop have pressed with low capacity compared to the designed capacity because there is a shortage of sugarcane in the beginning of the crop and a Number of factories, the production line in operation was not smooth at the beginning of the season.
By the end of December 2019, there are expected to be a number of sugar mills in the North and Central Highlands in the season such as Son Duong and An Khe (Quang Ngai).
Poor consumption forecast and North to South contraband
According to VSSA, it is normally forecasted that sugar demand will increase at the end of the year and prepare for the Lunar New Year, while inventories at sugar plants are still low but the market shows signs of slowing consumption.
The sugar mills going into production in December 2019 and January 2020 will provide quite a good supply to the market.
In addition, the source of imported sugar according to tariff quotas in 2019 will be added if the demand increases and smuggled sugar is still an illegal but abundant supply because smuggling activities are still rampant so there will be no shortage of sugar in the month. 1/2019.
Also according to the Association of Sugarcane is currently mitigating and the problem of concern is poor consumption because and there has been a situation of sugar from the North going backwards to the South, including smuggled sugar that market information indicates is the origin. from Lao Bao.
According to Economy and Consumption
