Low selling prices put sugarcane plantations at stake

Low selling prices put sugarcane plantations at stake The Saigon Times Daily A farmer harvests sugarcane in the Mekong Delta region – PHOTO: VNA HCMC – Sugarcane growers are facing hefty losses because of falling sugarcane prices. If the situation persists, it could discourage them from growing the tall perennial true grass in the coming years, reported the Vietnam News Agency. Data from the Agro Processing and Market Development Authority (Agrotrade Vietnam) under the Ministry of Agriculture and Rural Development shows that only one million tons of sugar products was sold across the country, while sugar inventories in factories amounted to some 600,000 tons between January and September. The prices of refined sugar products are falling sharply, at VND10,500-11,500 per kilogram. Compared with the 2017-2018 season, their decline ranges from VND3,000 to VND5,000 per kilogram. As a result, sugarcane prices are expected to drop even further. Sugar producers plan to lower their sugarcane purchase prices by VND200,000 (US$8.5) per ton against the previous season to VND700,000-800,000 (US$30-34). Pham Tri Tue, who resides in the southern province of Tay Ninh, told the Vietnam News Agency that his family had 70 hectares of land under sugarcane cultivation in the province and in parts of neighboring Cambodia. Tue said the production cost for one ton of raw sugarcane ranges from VND750,000 to VND800,000. However, Nuoc Trong Sugar Factory under Thanh Thanh Cong Group is purchasing the raw sugarcane at VND700,000 per ton. As such, sugarcane growers are suffering heavy losses. “With these prices,… [Read full story]