As sugar prices have also been falling in domestic market during one decade and about 80% of sugar already heaped up at the mills, the sugarcane growers are in difficulties, according to the growers from Mandalay and Sagaing Regions and northern Shan State.
“Local sugarcane price fall plays a vital role in the difficulties. The price of sugar was Ks 50,000 per ton in 2015-16. Now, the current price is Ks 38,000 per ton. The sugarcane mill has to pay Ks 1,000 per ton of sugarcane when the price was set to a rise. The domestic sugar market collapsed because foreign imported sugarcane influenced in the market. Moreover, sugar smuggling from China has also affected domestic manufactures.
As the border gates already closed, about 60,000 tons of sugars were heaped up in Muse Township, northern Shan State. The 18 domestic sugar mills are now producing about 500,000 tons of sugar per year. The local consumption of sugar is about 400,000 tons yearly. So, about 100,000 tons exceeded. We are going to seek the new market for exceeded sugar.
Now, the entrepreneurs from the abroad import the sugar and they are illegally selling the sugar in the local market. That’s why the market was collapsed. The local sugarcane factories didn’t sell their sugar. In doing so, the sugarcane growers were in difficulties because the mills didn’t pay good price,” said Cho Tue from Katha Township, Sagaing Region.
Although Katha Township produces about 1.8 million tons of sugar during this year sugarcane harvesting period, the factory bought about 1.3 million tons of sugar. So, the growers may sell their remaining sugar about 500,000 tons to the market in Mandalay after distilling. However, the price of distilled sugar already declined.
In Myanmar, there are over 400,000 acres of sugarcane and the production rate is over 10 million tons.
Currently, the sugars are being exported to the Chinese market. The sugarcane cultivation period started December to April.