The Ministry of Industry and Trade will put up for auction the quota for importing 89,500 tons of sugar this year, and at least VND140 billion (about USD6.15 million) could be raised if the bid for this year’s quota is the same as that last year.

The ministry has issued Circular 05/2017/TT-BCT regulating auction of sugar import quota in 2017, which will take effect from May 6 and expire on December 31.

Traders using crude sugar for domestic refining or refined sugar as a feedstock and relevant individuals and organizations can participate in the auction. The sugar import quota auction will be conducted through a council founded by the Ministry of Industry and Trade.

The sugar import quota auction in 2016 took place at the office of the Ministry of Industry and Trade on September 7 that year, with 22 valid bids for import of 85,000 tons of sugar. The ministry raised VND128 billion from the auction.

Experts have expressed concern that this sugar import quota this year may cause an oversupply. According to the Vietnam Sugar and Sugarcane Association (VSSA), the country’s sugar exports to China have come to a virtual standstill over the past few weeks while the amount of sugar smuggled into the local market has surged and its price has been VND500-1,000 lower than domestic products.

White sugar prices in the final week of April ranged from VND15,100  to VND16,300 per kilo while refined sugar was sold at VND16,800-17,300 per kilo.

According to data of VSSA, sugar inventories at factories and trading firms had amounted to over 700,000 tons by April 21. At the same time, 13 sugar factories have finished production for the 2016/2017 season.

Source: http://english.thesaigontimes.vn