Tridge Guide Post

How was the situation of the sugarcane market in Vietnam when COVID-19 hit?

Sugarcane
Vietnam
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By Jinwoo Cheon
Updated 2021년 10월 21일
The sugarcane industry in Vietnam after the Covid-19 hit saw a general decrease in demand. Aside from that, there has also been a decrease in the availability of labor forces, causing some crops to not be completely harvested.

In many southern provinces in Vietnam, in 2020 sugarcane crops have not been completely harvested, leaving hundreds of hectares left to be collected. Due to the effects of the COVID-19, the general demand for sugarcane decreased as well as the available labor forces to harvest the crop. Sugarcane consumption dropped sharply when many sugar mills in the country stopped operating to prevent the spread of COVID-19. Not only facing the difficulties in demand but also the next harvest is also expected to be difficult due to the saline intrusion situation in Vietnam. Demand for domestic sugar in Vietnam remains very low. The domestically produced sugar is poorly consumed and the inventory is very high and the foreign sugar continues to penetrate and dominate the markets in Vietnam. The price of sugar produced from domestic cane depends on the quality of sugar, ranging from 12,000 to 13,500 VND/KG. Sugar produced from domestic sugarcane is not consumed as the imported sugar prices and domestic prices compete. Due to the high competition, the prices of domestic sugar are pushed lower irrespective of the international sugar prices.

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