Saturday, July 16, 2011

China buys 10pc of Vietnam sugar sales, to take more

SugarHANOI: China has bought around 100,000 tonnes of Vietnamese sugar, nearly 10 percent of the country's sales from its latest crushing season, and imports are expected to continue in coming months, a state-run newspaper reported on Saturday.

"Inflation in China has now shown signs of easing, so sugar exports are likely to rise in the time ahead," the official Tuoi Tre (Youth) newspaper quoted experts as saying at an industry meeting that reviewed sugar production.

Chinese imports between the August 2010 start of Vietnam's sugar cane crushing season and last month accounted for nearly 10 percent of the 987,700 tonnes sold by Vietnamese sugar producers, the newspaper reported.

Most of Vietnam-refined sugar is used for domestic markets.

There was no data immediately available on previous Chinese imports of sugar.

China has stepped up purchases of farm products from Vietnam, including coffee, rice and rubber as it grapples with inclement weather, but higher prices could stoke inflation in the Southeast Asian nation, government data and state media said.

Vietnam's sugar output in the 2010/2011 crushing season jumped by a quarter from last year to 1.13 million tonnes.

The latest sugar cane crushing season ended in March in Vietnam, a tiny producer by world standards.

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