Sugar crop enough for 2009

HCM City (VNA) - Sugar output from 2008-2009 sugarcane crop is
expected to be 1.28 million tonnes, enough to meet domestic demand for next
year, according to the Government.

The country has 290,000ha under sugarcane now, 16,600ha fewer than the
last crop, the Ministry of Agriculture and Rural Development (MARD) said.

With an estimated yield of 57 tonnes per ha, sugarcane output will be over
16.5 million tonnes.

Following the 2008-2009 crop, Kien Giang and Tri An sugar plants will
resume operations, increasing the total number of plants in the country to
40 and daily processing capacity to 105,750 tonnes of sugarcane.

Globally, sugar yield will be slightly lower than last season while
consumption is rising, the International Sugar Organisation (ISO) has
forecast.

Prices will remain unchanged or rise, it says.

Sugar prices have globally been higher this year compared to last year.

In London , it fluctuated between 321 USD and 412 USD per tonne
compared to 303-352 USD last year.

In Vietnam it has risen by 400-3,000 VND per kilogramme since last
December to 7,500-11,000 VND (0.44-065 USD).

This is around 2,000 VND higher than in other countries, giving rise to
widespread smuggling, which has caused local producers many difficulties.

Farmers in southern Tra Vinh province are transporting nearly 2,000 tonnes
of sugarcane every day to the Tra Vinh Sugar Plant.

The plant has a production capacity of just 1,500 tonnes per day but
continues to buy all the sugarcane farmers bring.

At 540,000 VND (32 USD) it pays them for a tonne, farmers earn a profit of
7 million VND (416 USD) per hectare.

The plant is expanding capacity and has pledged to buy all the sugarcane
the farmers grow.-Enditem