CNI News

29 Sept 2022

Farmers, Myanmar Sugar and Cane Related Products Association and the Ministry of Agriculture have planned to discuss sugarcane prices for the upcoming milling season, according to the MSCRPA.

The meeting is scheduled for October or November and will focus on the floor price of sugarcane per ton, fuel oil needs and transportation, Chairman U Win Htay of the MSCRPA told the CNI.

“We just aim to negotiate sugarcane prices set by sugar mills in respective regions and transportation between mills and farmers in cooperation with the ministry. And we will apply for diesel if they need it. For instance, the floor price of sugarcane was set at MMK 90,000 per ton in northern Shan State So, we need to look at prices in other parts of the country like Sagaing, which may set the prices at MMK 85,000 or 90,000 per ton depending on profitability of millers. Some mills are very small and they may set the floor price at less than MMK 90,000 per ton. There will be only a little price gap.”

Negotiations among farmers, the association and the ministry will lead to transparency about sugarcane prices and help farmers to decide the cultivation acreage of sugarcane for the upcoming season, U Win Htay added.

Ground sugarcane is being collected at a sugar mill. (GETTY IMAGES)

He told the CNI, “Advantages are that millers can estimate prices and farmers can transparently how much their local mills set the floor price at, how much it costs them to purchase and transport sugarcane and how much profits they can enjoy. So, they can decide whether to expand or decrease sugarcane acreage in the upcoming season.”
Farmers and millers in the entire country have been invited to the meeting, which is scheduled in Nay Pyi Taw, and sugar merchants will also be welcomed there as sugarcane prices depend on that of sugar.

It would be beneficial for farmers only if the floor price is set at MMK 90,000 per ton at the meeting, U Maung Swe, a sugarcane farmer from Sagaing Region, told the CNI.
“At the current sugar prices, the floor price of sugarcane can be set at MMK 90,000 per ton and this will be beneficial for both farmers and millers. Only then, will farmers be willing to cultivate sugarcane in the upcoming season. We will have to ask for higher floor prices.”

Current purchasing floor prices are set at MMK 90,000 per ton in Ngweyeepale Sugar Mill in Shan State (North) but other mills in other regions have not said officially they will pay the same price.

Sugarcane farmers in Sagaing Region are also calling on Great Wall Wilmar Sugar Mill to give the same price.