Sugar price hit record-high of K2,200 per viss

The price of sugar spiked to a record high of K2,200 per viss (a viss equals 1.6 kilogrammes) in the domestic market, said Ko Ta Yoke from the Bayintnaung Sugar Commodity Centre.
The domestic sugar mills start to run at the end of the year. Therefore, it takes a long time for the new sugar season. Moreover, the global sugar export slump is another contributing factor to the price rise. The price is unlikely to fall, domestic sugar producers said.
“The wholesale price of sugar touched a high of K1,750 per viss in late 2010. On 31 May 2022, the price reached a fresh peak of K2,200,” said Ko Ta Yoke.
The local sugar brands sell the sugar at the wholesale price of K2,140-2,200 per viss in Yangon. The sugar market collapsed in the past years owing to the COVID-19 impacts, resulting in a decrease in sugarcane sowing acres. This year, more sugarcane acres are added. The sugarcane processing started in mid-December and the season has not ended yet. Approximately 440,000 tonnes of sugar are expected to flow into the market, market observers guessed.
According to the price data released daily by Mandalay Sugar and Sugarcane Products Enterprises Association, the sugar prices moved in the range of K1,700 and K2,100 on 28 May, while the syrup price was from K600 to K1,520.
The dealers are not commercially doing well when they sell the sugar produced by the Mandalay region as transport to Yangon city is added, said Ko Kyi Lwin, a seller from Nyaungbinlay market.
The sugar market tends to be slow-moving in the monsoon season every year. However, the Kyat depreciation against the US dollar drove the price up. The prices this year are on the rise compared to that of the previous years, traders stated.
Shopping centres in Yangon offer K800 for a 400-gramme sugar bag and K3,200 per viss (1,660 gramme).
This year, the sugarcane price rallied to K660,000 per tonne on average.
Myanmar was allowed to import the sugar from foreign markets and re-export them to neighbouring countries via cross-border trade. At that time, the wholesale price stood at only K1,600 per viss. When the re-export was banned, the wholesale price was only K900 per viss between mid-2018 and early 2021.
Starting from mid-January 2021, Kyat weakening against the US dollar raised the price up to above K1,000 per viss. The strong demand in late September 2021 hiked up the price to K1,800 per viss. The price is gradually increasing with K2,050 in January-end and K2,150 in April-end. The price remained in an upward trend and hit K2,200 in May-end 2022.
The surge in sugar prices increases the interest of the sugarcane growers.
The local sugar processing plants are mostly located in Bago, Sagaing and Mandalay regions. The mills are also found in Shan, Rakhine and Kachin states.
The global sugar price stands at US$0.19-0.20 per pound ( a viss equals 3.6 pounds).
At present, Myanmar’s syrup is exported to China through border trade. It is also shipped to Viet Nam via sea trade this year. — TWA/GNLM