Saturday,  Nov 17, 2018,20:00 (GMT+7) 0 0
Hau Giang struggles to improve sugarcane consumption
By Trung Chanh
Tuesday,  Oct 16, 2018,18:25 (GMT+7)

Hau Giang struggles to improve sugarcane consumption

By Trung Chanh

A farmer harvests sugarcane in Phung Hiep District, Hau Giang Province - PHOTO: TRUNG CHANH

CAN THO – Despite the significant efforts of authorities and sugar producers in Hau Giang Province, the largest sugarcane farming area in the Mekong Delta region, the province is still struggling to find sugarcane buyers because of large inventories and the price plunge.

Nguyen Van Dong, director of the Hau Giang Department of Agriculture and Rural Development, said farmers in Phung Hiep District have harvested sugarcane from 1,450 hectares of the total 7,500 hectares of land designated for the crop.

However, the sugarcane price has plunged to VND650-700 per kilogram, causing losses of VND100 per kilogram for farmers, Dong added.

The province is now home to three operational sugar factories, and they are facing a shortage of capital for their operations and a significant sugar surplus. Therefore, Dong proposed the State Bank of Vietnam raise the lending cap for sugar producers.

At the end of August, the Hau Giang government worked with the relevant departments and agencies as well as sugar producers to discuss ways to deal with the challenges facing the industry.

Le Van Doi, deputy director of the provincial Department of Agriculture and Rural Development, said that as of August, local farmers had found buyers for only half of their sugarcane output from some 5,000 hectares of land.

Representing enterprises, Nguyen Van Chinh, director of Long My Phat Sugarcane, Sugar and Ethanol JSC, said they had hesitated to sign contracts with farmers due to concerns over further price declines.

According to Pham Quang Vinh, vice chairman of the Vietnam Sugarcane and Sugar Association, the smuggling of sugar from other countries into Vietnam and the import of corn syrup have also hit the domestic sugar sector.

Vinh suggested localities enhance their control over sugar imports to protect the local sugar production, noting that the Government should launch antidumping investigations into syrup imports into the country.

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