VietNamNet Bridge – Many years ago, Vietnam kicked off the 1-million ton sugar programme, deciding that it needs to produce one million tons of sugar by 2000. However, the target remains out of reach, while Vietnam expects to import one million tons of sugar by 2020.

10 years and one figure

In 1995, when Vietnam could only churn out 300,000 tons of sugar, the Government decided that the country needed to be able to produce one million tons by 2000, making the 1-million ton sugar programme as one of the most important national plans. However, despite great efforts, the figure remains out of reach.

In the 2001-2002 crop, Vietnam made out 773,000 tons of sugar. Meanwhile, ten years ago, the total output volume remains modest at 900,000-1 million tons.

Explaining this, Ha Huu Phai, Secretary General of the Vietnam Sugar and Sugar Cane Association, said that the sugar cane growing area remains low, while the sugar cane prices have been fluctuating all the time. He said that nowadays, farmers do not like growing sugar cane, because the plant cannot bring a high enough profit .

“Sugar cane is the key plant in the central region, but the region oftensuffers from unexpected typhoons which badly affect the productivity,” he said.

Meanwhile, the Ministry of Agriculture and Rural Development (MARD) does not blame the low productivity on the small plantation area, but said that this is because of the low yield.

“We now can get 40-60 tons for every hectare of sugar cane, while the average yield in the world is 100 tons,” the report by the ministry reads.

According to MARD, more than 1000 sugar cane varieties have been used in Vietnam, 30 percent of which provides high yield. However, farmers still do not want to shift to high-yield varieties, because sugar refineries pay little for sugar cane.

Vietnam will import one million tons of sugar by 2020

Phai from the Sugar Association said that Vietnam’s total sugar demand may reach two million tons by 2020, and if the sugar production still maintains the current output, Vietnam will have to import one million tons of sugar by that time.

However, he believes that the production of two million tons of sugar would still be within reach if Vietnam sets reasonable policies to develop the sugar industry.

“If we can raise the sugar cane yield, we will be able to make out two million tons of sugar,” he affirmed.

Meanwhile, representative from Lam Son Sugar Company, pointed out that while Vietnam tries to produce more sugar, it forgets to manage the sugar cane prices.

The company now has 15,000 hectares of sugar cane growing area and the company wants to have another 15,000 hectares. However, it is not easy to expand the plantation area, because this largely depends on the prices, while these have been fluctuating all the time with a discouraging effect onfarmers.  

The lack of materials has made many sugar refineries unable to  run at full capacity. many refineries have been reportedly running at only 50 percent of capacity for the past many years.

MARD said that the sugar volume in stock is now very low, while the demand in December 2010 and January 2011 is believed to increase sharply. Therefore, the ministry has allowed some companies to import 200,000 tons of sugar to stabilise the domestic market.

Source: Thoi bao Kinh te Saigon