How the sugar industry relieves international pressure

Price can reflect the market supply and demand, generally in short supply will increase prices, oversupply will fall in price.
year, domestic sugar prices have been falling, with wholesale average prices falling to 5,394 yuan a tonne in June, down 2.1% month-on-month and 18.0% year-on-year.
the current price level has been significantly lower than the cost line of about 6000 yuan per ton, sugar enterprises have a large area of losses.
The International Sugar Organization (ISO) has raised the global sugar glut for the 2017/18 squeeze season to more than 10m tonnes, with a further 8.5m tonnes expected to be oversupplied in the coming year, with the potential for a new high this year and next.
, Director of the Marketing and Economic Information Department of the Ministry of Agriculture and Rural Affairs, said at a regular press conference recently that China's lack of sugar production, high trade dependence, price decline is mainly due to the international market oversupply pressure.
to study and introduce policies and measures to protect the interests of sugar farmers and promote the healthy development of the sugar industry.
Oversupply pressure spread to the domestic U.S. Department of Agriculture latest report shows that the estimated 2018 sugar oversupply of 16.93 million tons, Brazil as a major exporter in previous years, and this year in Brazil to reduce production, India, Thailand and other countries to increase production is obvious, the global sugar supply is still oversupplied.
Specifically, Brazil, as the largest sugar exporter in recent years, is the world's largest producer and exporter of sugar, in this year's ethanol profits are considerable and sugar is facing a bear market, sugar factories are mostly serious losses, and then disguised to produce ethanol to obtain more profits, although repeatedly lower sugar production rate, resulting in a reduction in sugar production, but still can not change the global sugar oversupply.
india as the world's second largest sugar producer, the first consumer, sugar mainly imported from Brazil, mainly processing.
india's production increase is more prominent, the government has repeatedly taken measures to curb the decline in sugar prices in the country.
a total of 54 sugar mills in Thailand were opened in the 2017/18 squeeze season, with a cumulative crush of 134.9 million tons of sugar cane and 14.68 million tons of sugar produced, an increase of 46% over the same period last year, and overall Exports from India and Thailand will increase by 3 million tons.
domestic contrast, the 2017/18 squeeze season according to the China Sugar Industry Association to adjust the estimated sugar production to 10.5 million tons, from the current white sugar harvest situation, this squeeze season production of about 10.3 million tons.
this year's production, the increase is more obvious is beet sugar.
As of the end of May 2018, the total national sales of sugar in the current sugar period 5.7467 million tons (the same period of the previous sugar production period 5.2863 million tons), the national production and sales data are basically in line with market expectations, but from the current market sales situation, most sugar groups by sacrificing prices to sell more sugar.
It is understood that sugar production enterprises white sugar stocks began to turn into a downward trend, in which industrial stocks decreased slightly to 509.08 million tons, the national reserve sugar remained unchanged at 6.1381 million tons and commercial stocks rose slightly to 629.515 million tons.
new industrial stocks of domestic sugar were 4.5596 million tons, down 16.73 percent month-on-month, but still higher than the same period in the past three years, and still need some time to consume.
industry analysts believe that the global sugar oversupply increased from 4 million tons at the beginning of this year to more than 10 million tons today, enough to see the global sugar oversupply more serious, especially with India, Thailand after the end of the new season, production increased significantly.
from the domestic sugar production situation, with the end of the current season production of 10.3 million tons, basically in line with the previous estimates.
In addition, on May 22, 2018, the import tariff on sugar will be adjusted from 95% to 90%, the reduction of tariffs will be conducive to the increase in imports of sugar, the import of sugar quota will rise from 1 million tons to 1.5 million tons, in the case of high profits from imported sugar, there is a certain negative pressure on domestic sugar prices.
the domestic sugar supply pressure increased dramatically, but demand did not see a rebound.
Industrial policy adjustment needs to deal with the four relations at present, the domestic sugar market has entered a period of pure sugar sales, within the quota of 15% tariff, Brazil's sugar-to-shore after-tax price is only 3275 yuan per ton, more than 2000 yuan lower than the domestic sugar price, huge domestic and foreign price differentials lead to the late domestic sugar prices easy to rise, need to study the introduction of protection of the interests of sugar farmers, promote the healthy development of the sugar industry policy measures.
Xu Xue, director of the research and management department of the Rural Economic Research Center of the Ministry of Agriculture and Rural Affairs, believes that the price of sugar is lower than the cost line of most sugar-making enterprises, the operational risk of domestic sugar-making enterprises is increased, and the income of sugar farmers is also facing a greater risk of payment.
the adjustment of sugar industry policy needs to deal with the following four aspects of the relationship.
is to deal with the relationship between government and the market.
sugar industry is typical of order agriculture, with sugar farmers at one end and sugar mills at the other.
On the one hand, sugar mills and sugar farmers signed an acquisition agreement, agreed to purchase prices, to protect the income of sugar farmers at the same time to ensure the supply of raw materials of sugar factories;
, the relationship between government and the market should be handled well and the boundary between the two should be clarified.
is to deal with the relationship between varieties in the production area.
At present, China's sugar production is mainly sugar cane, sugar cane-producing areas have a large area and a long history of cultivation, so we should further strengthen the construction of sugar cane areas, but we can not ignore the development potential of sugar beet sugar.
In recent years, beet sugar factory and the main production area government invested a lot of money to improve efficiency, sweet menu production, sugar content and other major technical indicators continue to improve, by-products have been effectively used, sugar production costs have been lower than sugar cane sugar.
although its planting area and sugar production in China's sugar industry is still small, but in some respects also represents the future development direction of China's sugar industry.
, the state should deal with the relationship between varieties in the production area when introducing the support policy on the sugar industry, and should not "lose the other way".
is to deal with the relationship between domestic sugar and imported sugar.
At present, China's annual sugar production of about 10 million tons, annual consumption of sugar about 15 million tons, production gap of about 5 million tons, so the annual need to import a portion of sugar to adjust the domestic market, but because of the domestic and foreign sugar prices are serious, and China's sugar import tariffs are at a lower level in the world, so China is facing the risk of excessive sugar imports.
So there is a need to coordinate the relationship between sugar self-sequencing and imports: on the one hand, sugar as a strategic material and important agricultural products, should maintain a certain capacity and self-severity rate;
fourth is to deal with the relationship between policy convergence.
because of the long sugar industry chain, sugar-related functions more, so it is necessary to do a good job between different policies.
From the implementation period and effect period of the policy, the sugar industry policy can be simply divided into short-term policy and long-term policy, short-term policy such as the current implementation of trade safeguards tariffs, automatic import licensing, industry self-regulation and so on.
These policies are effective quickly, after the introduction of the market expectations can be quickly stabilized to achieve the established goals, but also face the constraints of international trade rules and greater external implementation pressure, so it is difficult to survive in the long term, can not effectively solve the fundamental problems restricting the development of the industry;
The development of sugar industry is affected by many factors at home and abroad, therefore, to deal with the policy between the convergence of support, not only to have a "long-term management" of the policy system and long-term input, efforts to enhance the basic competitiveness of the industry, but also to strengthen the analysis and evaluation of the market, do a good job of policy reserves, timely introduction of temporary response policies to ensure the stable development of the industry.
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