Sugar sector faces multiple difficulties
Sugar sector faces multiple difficulties
The shrinking sugarcane farming area and the the rampant smuggling of sugar have prevented local sugar mills from operating at full capacity, while farmers have encountered heavy losses due to low selling prices.
On October 30, the National Steering Committee against Smuggling, Trade Fraud and Counterfeit Goods, also known as National Steering Committee 389, held a conference to seek ways to prevent the smuggling of sugar and help the sugar sector out of the doldrums, the Government news website reported.
According to a report by the Vietnam Sugarcane and Sugar Association delivered at the conference, the sugarcane farming area has plunged by 30%-60%. The lack of input material has forced sugar mills to operate at low capacity.
In the 2017-2018 crop season, 37 sugar mills nationwide produced nearly 1.5 tons of sugar, but the figure dropped to nearly 1.2 tons in the 2018-2019 crop season.
Meanwhile, farmers have to spend some VND7 million on every 1,000 square meters of sugarcane, but they can earn only VND3-4 million, resulting in heavy debt.
Under the roadmap of the ASEAN Trade in Goods Agreement, the tax on sugar imports from other ASEAN countries will be slashed to 5% from January 1 next year, putting more pressure on the local sugar sector.
Although domestic sugar processors are willing to compete with their rivals in the region, they need the State’s support in the fight against smuggled and counterfeit sugar products.
According to the Vietnam Sugarcane and Sugar Association, trade fraud has caused heavy losses for the local sugar sector. In the past two years, the smuggling of sugar from Thailand has led to the shutdown of one third of the sugar mills in Vietnam.
From early last year to September this year, the competent agencies uncovered 876 sugar smuggling cases, fining violators over VND1 billion and seizing more than 3,000 tons of sugar worth some VND12.5 billion.
Truong Van Ba, deputy head of the office of the National Steering Committee 389, said that the cross-border smuggling of sugar remains rampant. To reduce the smuggling of sugar, localities should enhance their inspections of paths and rivers in border areas and closely cooperate with the competent agencies, Ba advised.
In addition, farmers and sugar firms should apply advanced technology to produce high-quality sugar to meet the demands of consumers and compete with imported products.
