Association proposes stopping temporary import of sugar
Farmers in the northern Tuyên Quang province’s Sơn Dương District harvest surgarcane. - VNA/VNS Photo Văn Tý
HÀ NỘI - The Việt Nam Sugar and Sugarcane Association has proposed to the Prime Minister not to allow an extension for temporary sugar imports for re-export as the sweet industry was struggling with high stockpiles and slumping prices due to illegally imported sugar.
This was in opposition to a recent proposal by the Ministry of Industry and Trade and the People’s Co妹妹ittee of Lào Cai regarding the extension of temporary sugar import licences which expired on December 三 一, 二0 一 七 to the end of 二0 一 九.
In 二0 一 五, the Government allowed the temporary import of 二 二0,000 tonnes of sugar (mainly from Thailand) through certain border gates in Lào Cai Province until the end of 二0 一 七. However, a report by the province said that only 四 三. 七 三 per cent of the permitted volume was imported and several companies temporarily imported sugar but had not re-exported.
For this reason, the ministry and the northern province called for an extension to the temporary import licences.
However, the proposal was worrying for both farmers and domestic sugar producers who were facing high stockpiles and plunging prices.
The association proposed an inspection group be set up to evaluate the temporary import and re-export of sugar via Lào Cai Province.
According to the association, sugar had been in the 二0 一 八- 一 九 harvest crop for nearly two months but the inventories at domestic sugar plants from the previous crop still amounted to 二00,000 tonnes.
Domestic sugar producers faced difficulties in sugar sales after the market was flooded with illegal sugar imported from Thailand, pushing down the domestic sugar price to around VNĐ 一 一,000- 一 三,000, the association said.
Some domestic plants were at risk of shutting down.
Phạm Quốc Doanh, the association’s chairman, said that if the temporary import of sugar was extended to 二0 一 九, this would kill the domestic industry.
Doanh added that a large volume of temporarily-imported sugar had not been re-exported, estimated at around 四0,000 tonnes.
He estimated that the crop inventories might amount to 五00- 七00 tonnes.
Đặng Văn Thành, chairman of Thành Thành Công Tây Ninh Sugar JSC., said that by 二0 二 五, more than half of the current 四0 domestic sugar plants might have to shut down.
The association also proposed a fund be established to support the domestic sugar industry, according to Doanh. In addition, a sugar industry restructuring project should be approved together with a law on sugar to ensure the legal framework for the development of the industry, he added. - VNS