(VAN) Domestic sugar production, combined with imported sugar, smuggled sugar, and imported liquid sugar, leads to an oversupply situation, decreasing prices.
Sugar prices are forecasted to decline due to oversupply.
According to the Vietnam Sugarcane and Sugar Association, the Vietnamese sugar industry completed the 2023/2024 crushing season in July. Since the beginning of the season, the cumulative production has processed 10.953 million tons of sugarcane, an increase of 13%, producing 1.147 million tons of sugar, a 22% increase compared to the same period last year.
Thus, after five years, since the 2018/2019 season, the sugar industry has once again surpassed the production mark of 1 million tons of sugar (including sugar produced from sugarcane and sugar processed from imported raw sugar).
By the end of July, the total supply of refined sugar for domestic demand reached 1.336 million tons. This amount exceeds the total supply of refined sugar for the entire year of 2023, which was 1.305 million tons.
The abundant sugar supply includes sugar produced from the 2023/2024 season’s sugarcane, imported sugar from ASEAN countries (legally imported and smuggled across the Southwestern border), and imported corn syrup. The market is currently experiencing an oversupply.
Due to supply outstripping demand, a significant amount of sugar produced by factories remains in stock. As of July 30, approximately 60% of the sugar produced in the 2023/2024 season is still stored in the warehouses of sugar factories.
Because supply is higher than demand, it is predicted that in September, domestic sugar prices will decrease and remain low compared to the sugar prices of other sugarcane-growing countries in the region (Indonesia, the Philippines, and China).
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