The price of sugar jumped to K3,400 per viss in the domestic market amid the low stocks and inflation panic sparked by the issuance of the new K20,000 notes by the Central Bank of Myanmar (CBM)
The CBM notified on 23 July that the new K20,000 notes will be issued from 31 July. The price of sugar hit K3,240-3,280 and then rocketed to K3,380-3,400 per viss on 2 August, showing an increase of over K100 within two weeks.
Following the soaring sugar price, intending to help sugarcane growers, some companies have reportedly planned to contribute K200,000 per acre in advance for those new sugarcane growers for the 2023-2024 season.
In the 2023-2024 season, new advanced machines will be added. Moreover, sugarcane expansion is also expected on account of soaring sugar prices, as per the Myanmar Sugar and Cane Related Association.
Myanmar’s annual sugar production is estimated at 450,000 tonnes. Myanmar earlier sent sugar to China and Viet Nam beyond self-sufficiency. At present, it is delivered to Viet Nam only, said U Win Htay, vice-chair of the association.
Sugar export to China via border was conducted under the state-level Memorandum of Understanding. However, it came to an abrupt stop due to the COVID-19 policy in China. Therefore, the sugar industry called for a government-to-government agreement to legally export sugar to China under quota.
At present, Myanmar’s sugar is shipped to Viet Nam and it can be granted tax exemption by presenting the Certificate of Origin. Only three registered Myanmar companies are entitled to sugar exports to Viet Nam so far.
Sugarcane is commonly found in the upper Sagaing Region, followed by the northern Shan State. It is also found in the western and eastern Bago Region, Yangon Region and Mandalay Region. The sugarcane is grown in December-January. It can be harvested from November to February of the following years. The sugarcane growing rotation cycle lasts four years in Myanmar. — NN/EM
