The re-import of sugar is necessary in order to stabilise prices in the domestic market, according to a proposal by the Viet Nam Sugarcane Association sent to the Ministries of Agriculture and Rural Development as well as Industry and Trade.
The proposal is based on current market demand and supply and not on official demand, the association’s General Secretary, Nguyen Hai, explained.
According to association statistics, the country’s total stockpile of sugar came to only 500,000 tonnes by the middle of last month, the current figure being much lower due to exports to China.
Hai confirmed that from April to the end of last month, around 70,000-80,000 tonnes of sugar had been exported to China, both legally and illegally.
Export was set to increase to 100,000 tonnes which a small market like Viet Nam would struggle to deal with as prices were pushed up, he added.
In Ha Noi and some northern provinces, wholesale sugar prices have increased by VND1 million (US$50) per tonne to around VND19.5 million ($950) per tonne.
Previously, due to falling prices and oversupply, the association called on the Ministry of Industry and Trade to extend the final date for import quotas past December 7, thanks to which the market has been sufficiently warmed up.