The price of sugar continued its upward trend on account of the low stocks in the domestic market.
The rise in local sugar price is attributed to high sugar global market price at a current level of $680 per tonne.
Additionally, low stock in the domestic market and lack of sugar import from foreign markets drove the price up.
The prevailing prices stand at K3,250-K3,270 per viss in the domestic market.
Following the soaring sugar price, with a view to facilitating sugarcane growers, some companies have reportedly planned to contribute K200,000 per acre in advance for those new sugarcane growers for the 2023-2024 season.
In the 2023-2024 season, new advanced machines will be added. Moreover, sugarcane expansion is also expected on account of soaring sugar prices.
Myanmar’s annual sugar production is estimated at 450,000 tonnes. Myanmar earlier sent sugar to China and Viet Nam beyond self-sufficiency. At present, it is delivered to Viet Nam only, said U Win Htay, vice chair of the association.
Sugar export to China via border was conducted under the state-level Memorandum of Understanding. However, it came to a halt suddenly due to the COVID-19 policy of China. Therefore, the sugar industry called for a government to government agreement to legally export sugar to China under quota.
At present, Myanmar’s sugar is shipped to Viet Nam and it can be granted tax exemption by presenting the Certificate of Origin. Only three registered Myanmar companies are entitled for sugar exports to Viet Nam so far.
Sugarcane is commonly found in the upper Sagaing Region, followed by northern Shan State. It is also found in the western and eastern Bago Region, Yangon Region and Mandalay Region.
The sugarcane is grown in December-January. It can be harvested from November to February of the following years. The sugarcane growing rotation cycle lasts four years in Myanmar. — NN/EM
