Hope for recovery for raw sugarcane areas

Since September, Son Duong Sugar Joint Stock Company has twice decided to adjust the price policy for raw cane purchasing. The first time at the end of September, the Company agreed that the purchasing price of sugarcane for the 2021-2022 pressing crop would be VND 950,000 per tonne, applicable to areas with a radius of fewer than 30 kilometers (from the Son Duong Sugar Factory and Tuyen Quang Sugar Factory); VND 900 thousand per tonne for areas with a radius of over 30 kilometers.

However, the policy introduced in September has some unreasonable points, especially the region's purchasing policy application. Therefore, at the end of last November, the Company continued to issue a new purchasing policy, which was applied from 2021 - 2022 crop to the 2024 - 2025 crop.

Accordingly, in the 2021 - 2022 pressing crop, the Company will purchase raw sugar cane at VND 950,000 per tonne; for sugarcane varieties with tops from raw sugarcane is VND 1,080,000 per tonne; sugarcane breed from the garden at the price of VND 1,250,000 VND per tonne.

From 2022 - 2023 crop to 2024 - 2025 crop, the Company will apply the price of raw sugar cane purchased at VND 1,000,000 per tonne; breed cane from raw sugar cane is VND 1,130,000 VND per tonne; breed cane from the garden is VND 1,350,000 per ton. The purchasing period starts from December of the previous year to March of the following year.

Also, from the 2022 - 2023 crop onwards, the sugarcane purchasing price will be applied by the Company at a common price instead of by region as in previous years. In addition, the investment norm for the development of raw sugarcane areas such as tillage, conversion from other crops to sugarcane, fertilizer, etc., also increases and does not exceed 3 to 5 million VND/ha.

According to Mr. Nguyen Hong Minh, General Director of Son Duong Sugarcane Joint Stock Company, with the commitment price of VND 1,000,000 per tonne, this is the Company's record high purchasing price.

The Company decided to apply this price because it balances the market situation, the production cost of finished sugar... then offers a reasonable price so that people can feel secure and continue to accompany the Company and long-term attachment to the sugarcane industry.

Mr. Dao Van Dong, Hoang Lau hamlet, Trung Yen commune, Son Duong district, said that the price of raw sugar cane is adjusted upward and without the application of regional purchasing, which will benefit sugarcane growers.

With the price of VND 950,000 per tonne as announced, his family's 3.4 hectares of sugarcane in this crop is estimated to collect nearly 300 tonnes, bringing his family an income of VND 270 million. If the purchase price of the 2022 - 2023 crop increases to VND 1,000,000 per tonne, his family's income from sugarcane will increase and will undoubtedly attract his family as well as other households to expand raw sugarcane areas.

During the peak period of the sugar industry in Tuyen Quang province, the raw material area of Son Duong Sugar Joint Stock Company reached nearly 12,000 hectares with two factories in operation. The pressing usually lasts from November to March of the following year. However, at present, the raw material area is only over 2,000 hectares, only meeting the demand for raw materials for more than one month. The sharp decrease was mainly because the price of raw sugar cane only reached VND 800,000 per tonne, and the purchase and payment were not timely.

Mr. Phung Ngoc Vinh, Chairman of the People's Committee of Tan Thanh Commune, Son Duong District, said that during the peak period, the raw sugarcane area of the commune reached more than 200 hectares people race to grow sugarcane without land. However, the raw material area has decreased sharply in recent years, only about 1 hectare.

The decision of Son Duong Sugar Joint Stock Company to increase the purchase price of raw cane is a good sign for the local agricultural industry. Because at present, apart from afforestation, there are no high-economic value agricultural crops.

It is hoped that the Company will fulfill its commitment that the sugarcane purchasing price will reach VND 1,000,000 per tonne for the 2022-2023 pressing crop to regain the people's trust. When it is profitable and has a stable source of income, it is hoped that the raw material area will be stable and develop. In the sugarcane crop year 2022 - 2023, Tan Thanh commune is expected to plant 14 hectares of raw sugarcane.

According to Mr. Nguyen Hong Minh, General Director of Son Duong Sugar Joint Stock Company, with the adjustment of sugarcane prices to benefit the people, the Company builds a roadmap, striving that the cane crop in 2023 - 2024 will reach 4,800 hectares of raw sugarcane areas, by the crop 2024 - 2025 will reach 6,000 hectares. In particular, in the crop year 2022 - 2023, the Company plans to expand 500 hectares of raw material.

With the current price of white sugar stable at VND 17,000 to 18,000 per kilogram, the Company will stabilize sugarcane purchasing prices, payment, fertilizer, seed, and land preparation support for farmers as committed, the remaining problem is the trust and cooperation from the sugarcane growers.