The price of sugar spiked at K3,700 per viss in the domestic market amid the low stocks and no sugar importation, as per the Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Centre).
As the sugar price remained on an upward trend, some companies have reportedly planned to contribute K200,000 per acre in advance for new sugarcane growers for the 2023-2024 season. Rocketing prices will prompt the growers to expand the acreage of sugarcane and sugar export is expected to rise, as per the Myanmar Sugar and Cane Related Association.
Ngwe Yi Pale Sugar Co Ltd notified the sugarcane growers 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 acrage.
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 Cane Related Association.
Sugar export to China via the 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 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 for four years in Myanmar. — NN/EM