How sweet it is: Sugar import quotas auctioned

09:36 | 16/10/2017 Trade

(VEN) - An auction of sugar import quotas for 2017 successfully took place at the headquarters of the Ministry of Industry and Trade (MoIT) on August 23, reflecting market rules.

how sweet it is sugar import quotas auctioned
Deputy Minister of Industry and Trade Tran Quoc Khanh (standing) conducts the auction

Vietnam will import 89,500 tonnes of sugar this year (44,000 tonnes of raw sugar and 45,500 tonnes of refined sugar), following its commitment to the World Trade Organization (WTO). This was the second auction of sugar import quotas organized by MoIT, in coordination with the Ministry of Agriculture and Rural Development and other ministries and sectors.

Three companies winning the auction to import 44,000 tonnes of raw sugar include the Thanh Thanh Cong Tay Ninh Joint Stock Company, the Bien Hoa Sugar Joint Stock Company and the Bien Hoa-Ninh Hoa Sugar One Member Company Limited. The winning price was VND2.5 million per tonne. Twelve other companies won the auction to import 45,500 tonnes of refined sugar. The lowest winning price was VND1.82 million per tonne, while the highest winning bid was VND4.55 million per tonne. A total of about VND200 billion was earned for the state budget from the auction of sugar import quotas for 2017.

Vietnam Sugarcane and Sugar Association President Pham Quoc Doanh said the auction’s results reflect market rules. The highest winning price for refined sugar, VND4.45 million per tonne, reflects the actual demand for sugar imports, he added.

Some giants in the sugar sector failed to win the auction due to low bids. Examples include the Khanh Hoa Sugar Joint Stock Company, which needs 50,000-70,000 tonnes of raw sugar to produce refined sugar in 2017, and the Vietnam Dairy Products Joint Stock Company (Vinamilk), which has very high demand for refined sugar.

After they pay in full for the quotas, companies winning the auction will receive documents that give them the right to use the quotas. When they implement sugar import procedures, companies have to submit these documents to customs officials at border crossings. Under existing regulations, these companies can carry out import activities by themselves or authorize other companies to import, but they are not allowed to transfer the right to use the quotas.

Vietnam Sugarcane and Sugar Association President Pham Quoc Doanh: The publicized auction of sugar import quotas is aimed to ensure the transparency of sugar imports and equality for companies. Auction results reflect market rules. The auction also creates a source of income for the state budget.

Lan Ngoc