Sugar prices are likely to increase due to the shortage of 2.5 million tonnes of sugar during the 2019 – 2020 crop, experts forecast at the fourth conference of the ASEAN Sugar Alliance (ASA) underway in Ho Chi Minh City on June 17-18.
Sugar prices in domestic market have fallen so sharply that sugar mills and sugarcane farmers in the Cuu Long (Mekong) Delta are facing difficulties.
A pilot auction for sugar import quotas was proposed to help curb soaring prices in the domestic market, amid the elevated demand.
Government approval for importing 100,000 tonnes of sugar will help meet demand in the local market, but cannot bring down prices because the distribution system is poor, economists say.
Even though the amount of sugar stockpiled in the country has reached 110,000 tonnes, enterprises that use sugar in their production operations are finding it difficult to access it. Do sugar suppliers deliberately speculate to drive the prices of domestic sugar up, even higher than those of imported sugar?