Sugar price spikes in domestic market

The domestic market sees commodity bull market and sugar price surged to over K3,700 per viss, according to the Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Wholesale Centre).
The low stocks, lack of sugar import, and commodity price rises triggered by the Kyat depreciation in the forex market are contributing factors to the rocketing sugar price.
The price jumped to K3,720 per viss on 1 September from K3,400 on 2 August, which is a one-month increase of K320 per viss.
With the sugar price rising, 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 machinery and equipment with better capacity will be installed at the sugar mills. Moreover, soaring prices will prompt the growers to expand the acreage of sugarcane, as per the Myanmar Sugar and Sugarcane Related Association.
Ngwe Yi Pale Sugar Co Ltd notified the sugarcane growers in early August that it will offer K110,000 per tonne of sugarcane in the upcoming 2023-2024 sugarcane season.
Therefore, the company enticed the growers to ramp up production and expand the cultivation acres.
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 Myanmar Sugar and sugarcane Related Association.
Sugar export to China via the land border was conducted under the provincial-level Memorandum of Understanding. However, it came to an abrupt stop 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 tax exemption is granted with the presence of the Certificate of Origin. Only three registered Myanmar companies are entitled to sugar exports to Viet Nam so far.
Sugarcane is commonly planted 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