Total sugar inventory at factories and trading companies by the end of April reached a record high in the history of the local sugar industry, according to the Vietnam Sugar Cane and Sugar Association.

By the end of April, total inventory stood at 717,519 tonnes of sugar, including 674,487 tonnes of sugar in factories and 43,032 tonnes in trading companies.

That surpassed the record of 701,680 tonnes in April 2014, said the association.

The inventory was highest at 235,494 tonnes in the southeast region, followed by the centre with 221,659 tonnes, the north with 153,806 tonnes and the Mekong Delta region with 61,168 tonnes.

Nguyen Hai, General Secretary of the association, said sugar consumption was slow. In April, the industry consumed 120,636 tonnes of sugar. Meanwhile, 17 factories produced 165,000 tonnes of sugar in the month, higher than demand. In May, those factories expect to add 150,000 tonnes to the market supply.

In the first four months, total sugar output reached 1,041,439 tonnes, according to the association.

The strong growth in sugar inventory was due to a reduction in demand after Tet festival while sugar exports struggled to compete with Thai sugar exports to China, the association said.

Additionally, smuggled sugar and fraudulent sugar entering the local market affected consumption of domestic sugar, causing the sugar inventory to hit the record high.

Prices of smuggled and fraudulent sugar products was 600-1,400 VND per kilo lower than domestically-produced sugar products, the association said.

On May 3, wholesale price of white sugar was 15,600-16,300 VND (0.690-0.72 USD) per kilo in Hanoi, 15,000-15,400 VND in the centre and 15,600-16,400 VND in HCM City. The price of smuggled Thai sugar was 14,000 VND per kilo in Lao Bao border gate, Quang Tri Province and 15,000 VND in HCM City, reported nongnghiep.vn.

Smuggled sugar enters the local market via border gates in the Southwest border and border with Laos.

Also, sugar has been temporarily imported to Vietnam with the premise of being re-exported to other countries but in fact, a volume of sugar was imported to sell in provinces in the north with lower prices. This volume of sugar has created difficulties in consuming domestic sugar, according to sugar factories. 

VNA