CNI News

8 Sept 2022

Sugar mills are buying sugarcane from farmers at MMK 90,000 per ton for 2022-2023 harvesting season, according to farmers.

Sugar mills announced last month that they would buy sugarcane from farmers at MMK 80,000 per ton but they raised the purchasing prices to encourage farmers to expand sugarcane cultivation amid rising domestic sugar prices, U Maung Swe, a sugarcane farmer in Sagaing Region, told the CNI.

He said, “Sugarcane purchasing prices have risen by MMK 10,000 to MMK 90,000 per ton. Sugar mills are raising the purchasing prices as much as they can to encourage farmers to expand sugarcane cultivation amid rising domestic sugar prices.”

Mong Yal sugar mill and Ngweyaypale sugar mill in Shan State (North) announced that they would purchase sugarcane from farmers at MMK 90,000 per ton, Great Wall Waymar sugar mill has not announced their purchasing prices officially.

Great Wall-Waymar sugar mill has already signed purchasing contracts with farmers in Sagaing Region when sugarcane prices were at MMK 80,000 per ton. Therefore, farmers are planning to ask for the mill to pay them MMK 90,000 per ton for their sugarcane, according to a farmer in Katha.

Workers carrying sugarcane. (Getty Images)

He said, “We have signed purchasing contracts with Great Wall at MMK 80,000 per ton. As purchasing prices of other mills have risen to MMK 90,000 per ton, we will ask for MMK 90,000 per ton from Great Wall. I think they will agree. It is said that the mill will pay us MMK 90,000 per ton. However, the mill has not officially announced their decision,” he told the CNI.

Last year, farmers received MMK 65,000 per ton for their sugarcane but sugarcane prices have surged this year due to rising prices of inputs and sugar.

Sugar mills are offering advance payments to encourage farmers to expand sugarcane cultivation, farmer U Maung Swe told the CNI.

He said, “They are developing plans for advance payments. It is said that they will give MMK 300,000 and fertilizer worth MMK 100,000 for an acre of sugarcane. Farmers will expand sugarcane cultivation when they get advance payments.”

Sugarcane is mainly grown in Sagaing Region and Shan State (North) and there are a few sugarcane plantations in Mandalay and Bago regions. Myanmar produces 500,000 tons of sugarcane every year. Sugar prices have risen to their record heights this year due to low domestic stock and lack of imports from other countries.

Sugar prices rose from K 1,000 per viss last year to K 2,200 per viss this year.