Sugar mill operators expected to delay sugarcane purchase

Sugar mill operators expected to delay sugarcane purchase

Myanmar’s sugar mill operators are expected to delay buying sugarcane during the December-April season, according to the Myanmar Sugar and Sugarcane Related Products Merchants and Manufacturers Association. “There are 23 sugar factories in the local market. Only two mills — Great Wall and Nawaday — have started to purchase sugarcane. Nawaday Sugar Mill offered K45,000 per ton, while Great Wall bought a ton of sugarcane at K41,500. Sugar mills are ready to run, but old stocks remain in the mills, so operators are delaying the purchase of sugarcane,” according to the association.

With China banning sugar imports, within a year, sugar stockpiled in mills and traders’ warehouses, causing prices to drop below K900 per viss (a viss equals 1.6 kilograms). The sugarcane market is likely to raise its head again only after China’s ban on sugar imports is lifted. Most of the millers are preparing to buy sugarcane in the second and third week of December. The delayed purchase might hurt the quality and yield rate in the following year, and growers. “Following the drop in price, sugarcane acreage might decrease next year,” said an official from the association.

Myanmar produced about 450,000 tons of sugar from 440,000 acres of sugarcane plantations in the 2014-2015 fiscal year, over 390,000 tons from 390,000 acres in the 2015-2016FY, over 370,000 tons from 400,000 acres in the 2016-2017FY, over 500,000 tons from 400,000 acres in the 2017-2018FY, and 500,000 tons from 500,000 acres in the 2018-2019FY.

Sugarcane prices were pegged at over K50,000 per ton in the 2015-2016FY, K45,000 in the 2016-2017FY, K41,500 in the 2017-2018FY, and K38,000-40,000 in the 2018-2019FY, according to news released online by the Ministry of Commerce.

From : Global New Light