Abstract of Yunnan Sugar Conference in 2013

By CnAgri2013-05-02 11:05:23 Print 1. Sugar production: the national sugar production should be 13.3 million tons in 2012/13, the maximum should be less than 13.6 million tons, of which Guangxi to produce 8 million tons, Yunnan 2.3 million tons, Guangdong 1.2 million tons, Xinjiang 550,000 tons, Hainan 490,000 tons and Inner Mongolia 160,000 tons.
 
2. Sugar consumption shall still surpass 13.5 million tons in 2013 (not including starch sugar and other sugar replacers), and the sugar crushing industry shall generate over 10 billion yuan deficit.
 
3. The domestic starch sugar industry has been developing rapidly, the production stood at 10.46 million tons in 2012, taking the second rank just after the US.
 
4. This year is the year of the largest national sugar reserve, the storage capacity is limited and it is more difficult to exercise macro control over the sugar market. 1.5 million tons sugar has been bought for the reserve already during the campaign.
 
5. There has been serious sugar smuggling during the year, Yunnan saw the most serious situation and strict combat shall be in place.
 
6. China imported 3.75 million tons sugar in 2012, plus the smuggled big amount, there was a big impact on the domestic sugar industry.
 
7. The international price shall sustain at 16-20 US cents and the level should not surge because of the oversupply in the world.
 
8. It was suggested the Government should buy the second batch of 300,000 tons for the reserve as soon as possible, plus the local reserve of 200,000 tons, 2 million tons procurement for the reserve should be in place firstly. And it was suggested there should be no rotation of the reserve at present. Priority shall be accorded to control of import, combating smuggling and selling of receipts in the future.
 
9. Conclusion from the officials: “the national sugar consumption should be over 13.5 million tons in 2013, production shall meet the demand during the campaign and the price shall stabilize”. Producers and traders were suggested to sell at a price higher than the cost.

From “China Sugar Market Monthly Report”