Domestic sugar prices on the rise tracking global influences

domestic sugar price stays high as global sugar prices strengthen, U Win Htay, vice chair of Myanmar Sugar and Sugarcane Related Products Association told the Global New Light of Myanmar.
At present, the FOB price of sugar hit US$550 per tonne tracking the dollar gains.
“When we calculate sugar price on the exchange rate. The international sugar price is $550 per tonne. Consequently, domestic sugar prices peaked at over K2,000 per viss. The domestic sugar price is correlated with global sugar prices,” U Win Htay elaborated.
However, domestic sugar price is lower a bit although it is determined by the international sugar price index. The sugar price is K2,260 per viss (a viss equals 1.6 kilogrammes) in the domestic market. Domestic sugar prices stood at only K900-1,000 per viss in the previous years.
There are approximately 450,000 acres of sugarcane across the country, with annual sugar production of 450,000 tonnes. In addition to the domestic consumption, the remaining was shipped to China and Viet Nam in the previous years. This year, it is only exported to Viet Nam, the association stated.
“The sugar consumption per capita is estimated at eight kilogrammes. If we calculate it with the whole population of over five million, the domestic consumption totals about 350,000-400,000 tonnes. Therefore, only a small volume of sugar is left for exports beyond self-sufficiency. Earlier, Myanmar delivered syrup to China. During the pandemic, syrup export halted amid China’s strict virus policy. So, we will convey the surplus sugar to Viet Nam via maritime trade for now,” U Win Htay continued.
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.
Some sugar companies offered the price of sugarcane at K80,000 per tonne for the upcoming sugarcane season 2022-2023. — NN/GNLM