Vietnam should consider importing more sugar to cool a probable rise in prices in October/November when stocks fall due to strong consumption during a mid-autumn festival, a government report said on Tuesday.
Vietnam has imported 93,000 tonnes of sugar so far this year out of an annual quota of 250,000 tonnes, the report said. Industry officials have said high sugar prices have stopped importers buying more of the sweetener. Having anticipated sugar demand would reach 1.2 million tonnes, above output this year, the authorities have allowed 24 domestic companies to import 250,000 tonnes of both raw and refined sugar, down 16.7 percent from the quota issued for 2010.
ICE raw sugar futures have been pushed up by uncertainty over the size of top producer Brazil's cane crush. October raw sugar was up 0.46 cent or 1.7 percent at 28.36 cents a lb at 1004 GMT. The front month set a contract high of 31.33 cents last week.
Vietnam's sugar output as of July 11 reached 1.15 million tonnes, above earlier forecasts and a rise of 29 percent from 890,000 tonnes refined in the same period in 2010, the government report cited Agriculture Ministry data as showing. Sugar consumption will rise as manufacturers make mooncakes in preparation for the mid-autumn festival that falls on September 12. Vietnam is a small sugar producer by world standards.
Agriculture Minister Cao Duc Phat said he would ask the trade ministry to consider more sugar imports to stabilise domestic prices, the government report said.