Sugarcane production in the central province of Quang Ngai. (Photo: VNA)

Sugar could become more expensive in the remaining months of 2023, according to the Vietnam Sugarcane and Sugar Association (VSSA).

Data from the Vietnam Commodity Exchange (MXV) showed global sugar prices had reached 161 USD per tonne in early November, a 150% increase compared to the beginning of the year, marking the highest price in the last 12 years.

Industry experts said a decrease in supply as India and Thailand, two of the largest producers, lowered their output was the main factor behind recent price hikes.

Thanh Thanh Cong-Bien Hoa JSC, a major sugar producer in Vietnam with a 46% market share, said the company's revenue increased to 5.9 trillion VND (245.8 million USD) in the first three quarters of 2023, a nearly 20% increase compared to the same period in the previous year, fetching 663 billion VND in pre-tax profit.

After-tax profit, however, plummeted by 17% as the company struggled with high interest rates, paying out over 444 billion VND on interest payments, almost double the amount recorded in 2022.

Lam Son Sugar reported its highest growth, 471 billion VND in revenue and 17 billion VND in profit, a 55% and 113% increase, respectively compared to the same period in 2022. In an earlier development, Lam Son Sugar announced a plan to import 40,000 tonnes of raw sugar this year, as part of an effort to meet their annual target.

Son La Sugar also reported strong growth with a revenue of 431 billion VND and profit of 119 billion VND, an increase of 26% and 47% respectively, compared to the period last year. An effort to reduce financial costs by Son La Sugar has yielded stronger profits and was on its way to meeting this year's fiscal target.

Quang Ngai Sugar reported an after-tax profit of 506 billion VND for the third quarter of 2023, a 60% increase compared to the same period last year but slightly lower than their performance during the first and second quarters of 2023.

In total, Quang Ngai Sugar reported a total revenue of 7.74 trillion VND in the first nine months of the year, an increase of 23% compared to the same period last year, with sugar being the strongest growth driver for the company, fetching 3.12 trillion VND in revenue and 1.26 trillion VND in gross profit.

With just a few months left before the end of 2023, the price of sugar will likely increase due to higher demand, typically seen towards the Tet (Lunar New Year) Holiday. Meanwhile, inventory has been running low for some time, prompting experts to anticipate difficulties on the supplier's side in the domestic market.

They advised sugar producers to capitalise on high prices to strengthen domestic sugarcane production and rely less on imports./.