HA NOI Sugar prices had fallen and were beginning to stabilise after four recent months of increases, said Nguyen Bai Duong of the Ministry of Agricultre and Rural Development.
Sugar has now dropped by over 11 per cent, or about VND2,000, to VND15,500 (US$0.87) per kilo in the major cities Ha Noi and HCM City, and it stood at about VND15,200 ($0.86) in the central city of Da Nang.
"Thanks to the latest volume of sugar imports, the price of sugar has cooled down," said Duong. "The price will be stable soon."
The nation has imported 101,000 tonnes of sugar since the beginning of this year, according to ministry figures, and decided last month to import an additional 10,000 tonnes to help ease pressure on prices.
Domestic production has also risen, with 40 manufacturers producing about 200,000 tonnes per month. The cost of raw materials, meanwhile, has dropped, with the price of sugarcane down by an average of VND20,000 ($1.15) per tonne to a current range of VND730,000 ($41)-810,000 ($45) per tonne.
But sugarcane supplies are still not able to the meet the demand of domestic sugar mills. Hau Giang Province, the sugar cane hub in Cuu Long (Mekong) Delta region, has harvested about 8,000ha of sugarcane so far on a total area under cultivation of 13,000ha. The region s total area under cane cultivation has fallen from a high in previous years of 90,000ha to just 67,000ha currently. VNS