Revitalizing the Sugar Cane Industry in Vietnam

Sugar prices have dropped sharply, but inventory remains at an unprecedented high level, due to sluggish consumption and pressure from smuggled sugar and corn syrup. To help the sugar cane industry overcome difficulties, decisive policy actions are needed to protect the value chain and the livelihoods of sugarcane farmers.

Record Low Prices Still Difficult to Sell Sugar warehouse stocks have reached a record high despite domestic selling prices being lower than many countries in the region, reflecting weak consumption and a distorted market. The 2024-2025 sugarcane season in Vietnam has essentially concluded, but the unusual aspect is that sugar inventory has reached an unprecedented peak. According to the Vietnam Sugar Association (VSSA), although factories have ended the crushing season, warehouses remain full due to a sluggish consumption market. The latest data shows that current inventory exceeds 70% of total seasonal production – a figure never before seen in the industry's history. In reality, despite Vietnamese sugar prices being significantly cheaper compared to countries like the Philippines, Indonesia, or China, stagnant sales persist. Specifically, the average sugar price in Vietnam is only around 18,898 dong/kg, 11,000-13,000 dong/kg lower than many other sugar-producing countries. ...