Sugarcane production in Myanmar is likely to dip to seven-year low due to poor demand.
U Win Htay, vice-chair of the Myanmar Sugar and Sugarcane Product Entrepreneur Association said, “Demand for sugar is too low now and traders are rushing to sell what’s left in the warehouses at fire sale prices to avoid getting caught in the sugar glut.”
China is one of the major importers of sugar from Myanmar. According to the report, China has raised import duties on Myanmar sugar to 85 per cent and cracked down on illegal traders by blocking off their usual trade routes since 2017, leading to the current oversupply.
Sugar exports from Myanmar have fallen. The reduction in demand has resulted in farmers reducing sugarcane cultivation in the country. As per the report, sugarcane cultivation in 2020-21 season is expected to just over 350,000 acres. It is a decline of more than per cent, which is the lowest in 7 years.
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