Vietnam Sugarcane and Sugar Association on Monday proposed to the Ministries of Industry and Trade, and Agriculture and Rural Development to permit businesses to export about 200,000 tonnes of its surplus sugar.
|Harvested sugar cane being transported in the Mekong Delta (Photo: SGGP)|
The proposal was made by Nguyen Thanh Long, chairman of the association, at a press conference in Ho Chi Minh City, in order to ease the tremendous shortage of capital faced by businesses.
According to initial statistics, stocks lying with processing units and trading companies are about 300,000 tonnes and wholesale sugar prices have plunged to VND15,500 a kilogram, a fall of VND1,000 over the last month.
Meanwhile, the cost of producing a kilogram of sugar is VND16,000, not including bank interest of VND250 a kilogram.
The association also proposed to the State to lower bank interest rates so that businesses can continue to purchase sugar cane for the rest of the crop season and stockpile sugar.
Farmers should not broaden sugar cane farming area in the next crop, but focus on increasing yield, improving quality and reducing production costs, the association stated.
Mekong Delta faced with a surplus in sugar production