Vietnam will have a sugar surplus for the first ever time this year, and is looking at ways to export the commodity.
Sugar output is expected to reach a record 1.43 million tonnes in the2011-12 crop, 280,000 tonnes higher than last year, Do Thanh Liem,deputy chairman of the Vietnam Sugar and Sugarcane Association, told arecent conference.
This amount, in addition to more than100,000 tonnes stockpiled at sugar mills and 70,000 tonnes importedunder Vietnam 's World Trade Organisation commitments, would lead toexcess supply of 300,000 tonnes, he said.
It does notinclude sugar that is smuggled in, the association said, adding thevolume of contraband is forecast to rise this year, putting even morepressure on the industry.
Liem said sugar producers facedifficulties such as lack of funds to pay off their debts to sugarcanefarmers and the high interest rates on bank loans.
Nguyen Thanh Long, the association's chairman, said though the producers cut prices, sales remain poor.
To reduce stocks, the association submitted a proposal to theMinistries of Agriculture and Rural Development and Industry and Tradeto allow members to export 30,000 tonnes of sugar to Indonesia andSingapore and to sell overland to China, and adopt flexibleimport-export policies, he said.
It also petitioned the Government to order banks to lend more to the sugar industry, he said.
Deputy Minister of Agriculture and Rural Development Diep Kinh Tan saidhis ministry will discuss solutions for the sugar industry's problemswith the Ministry of Industry and Trade next month.
Hesuggested Government support in terms of funds and lending interestrates so that sugar mills can maintain stocks to stabilise the market.
His ministry would seek approval for export of 250,000 tonnes of sugaras petitioned by the association, Tan said, adding relevant agenciesshould prevent sugar smuggling into the country.
Globalsugar prices continued to fall last week following an increase in supplyand a fall in demand due to the European debt crisis. /.
Sugar output is expected to reach a record 1.43 million tonnes in the2011-12 crop, 280,000 tonnes higher than last year, Do Thanh Liem,deputy chairman of the Vietnam Sugar and Sugarcane Association, told arecent conference.
This amount, in addition to more than100,000 tonnes stockpiled at sugar mills and 70,000 tonnes importedunder Vietnam 's World Trade Organisation commitments, would lead toexcess supply of 300,000 tonnes, he said.
It does notinclude sugar that is smuggled in, the association said, adding thevolume of contraband is forecast to rise this year, putting even morepressure on the industry.
Liem said sugar producers facedifficulties such as lack of funds to pay off their debts to sugarcanefarmers and the high interest rates on bank loans.
Nguyen Thanh Long, the association's chairman, said though the producers cut prices, sales remain poor.
To reduce stocks, the association submitted a proposal to theMinistries of Agriculture and Rural Development and Industry and Tradeto allow members to export 30,000 tonnes of sugar to Indonesia andSingapore and to sell overland to China, and adopt flexibleimport-export policies, he said.
It also petitioned the Government to order banks to lend more to the sugar industry, he said.
Deputy Minister of Agriculture and Rural Development Diep Kinh Tan saidhis ministry will discuss solutions for the sugar industry's problemswith the Ministry of Industry and Trade next month.
Hesuggested Government support in terms of funds and lending interestrates so that sugar mills can maintain stocks to stabilise the market.
His ministry would seek approval for export of 250,000 tonnes of sugaras petitioned by the association, Tan said, adding relevant agenciesshould prevent sugar smuggling into the country.
Globalsugar prices continued to fall last week following an increase in supplyand a fall in demand due to the European debt crisis. /.
