Without careful preparation, the sugar industry in Vietnam is increasingly shrinking

Published 2022년 1월 20일

Tridge summary

Since Vietnam removed quotas and reduced sugar import tax under the ASEAN Trade in Goods Agreement (ATIGA) in 2020, the country has seen a significant decline in sugarcane production and processing. The sugarcane production area has decreased by 45.1%, yield by 5.1%, and the number of farming households by 42.5%. The industry now only operates at 40% of the demand for sugar used in processing. Experts recommend the implementation of policies and mechanisms to improve productivity, quality, and reduce costs in the sugar industry. They also suggest linking sugarcane growing areas with processing plants and addressing issues such as smuggling, benefit-sharing ratios, and price transparency. The industry's decline is due to the low price of sugar and competition with other crops, leading to a decrease in investment and care by farmers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Since Vietnam removed quotas and reduced sugar import tax to as low as 5% under the ASEAN Trade in Goods Agreement (ATIGA) from January 1, 2020, sugar cane production and processing deep decline. This shows that the sugar industry lacks careful preparation before opening and has led to the loss of the domestic sugar industry. Sugarcane production area decreased by 45.1%, from 274,340 ha in crop year 2016-2017 to 150,689 ha at present. Sugarcane yield also decreased by 5.1%, from 64.8 tons/ha in 2016-2017 to 61.5 tons/ha. Along with that, the number of sugarcane farming households decreased by 42.5%, from nearly 219,500 households in 2016-2017 to over 126,200 households. According to the reports of sugar mills, in the 2020-2021 pressing season, the output of raw sugar cane consumed and processed is only 6,739,417 tons of sugarcane (compared to the factory's expected 7,498,060 tons at the beginning of the crop. Street). This is the season with the lowest amount of sugarcane consumed ...

Source: Vinanet