Sugar price on upward spiral

The price of sugar continued its upward trend in the domestic market and it touched a high of about K3,300 per viss.
The rise in local sugar prices is attributed to the 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.
Following the soaring sugar price, intending to facilitate sugarcane growers, Ngwe Yee Pale Sugar Company has 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. That being so, sugar export will grow for sure, according to Myanmar Sugar and Sugarcane Products Association.
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 in China. Therefore, the sugar industry called for a government-to-government agreement to legally export sugar to China under quota, he continued.
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 to sugar exports to Viet Nam so far.
Sugarcane is commonly found in the upper Sagaing Region, followed by the 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