Deputy Minister of Industry and Trade Nguyen Thanh Bien talks to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about controlling the price of sugar.

About 137,000 tonnes of sugar are stockpiled. The figure will increase to 537,000 tonnes after we reap the sugarcane crop by the end of February this year, and domestic consumption stands at about 100,000 tonnes per month. Obviously it is unreasonable for the price of sugar to increase when the demand for this product does not exceed supply. What measures have the Ministry of Industry and Trade taken to stabilise the domestic price of sugar?

The ministry has already asked the Government to import 150,000 tonnes of sugar as soon as fluctuations in the domestic price of sugar occurred in the local market. This amount has been divided up between dairy maker Vinamilk, candy factories and other manufacturers.

In regards to long-term measures the Ministry of Industry and Trade will co-ordinate with the Ministry of Agriculture and Rural Development to regulate import quotas and import tariffs for factories which want to import sugar.

The Ministry of Industry and Trade also instructed the Market Control Department and the Central Steering Anti-smuggling Committee 127 to examine and punish organisations and individuals which speculate in sugar and raise prices to unrealistic levels. We are determined not to let the price of sugar fall prey to speculation.

Currently, there is a difference in the wholesale price of sugar sold at factories (VND15,000 per kilo) and at supermarkets (VND20,000 per kilo).

Some people are suggesting that the increased price of sugar on the domestic market is an indication of market manipulation because the State has always controlled import quotas to protect the sugar sector. What is the view of the ministry over these opinions?

We have asked sugar making factories to commit themselves to not raising sugar prices in line with world prices as a condition to limit the import of sugar. By doing so, we want to protect the sugar sector and consumer interests. If they don't follow these guidelines, we will have to continue to import sugar to stabilise sugar prices.

Has the Ministry of Industry and Trade opted for a solution that leaves farmers suffering losses when taking measures to stabilise sugar price?

The Ministry of Industry and Trade has reached a consensus with the Ministry of Agriculture and Rural Development and the Ministry of Finance on sugar import quotas this year. Further adjustments will be made in the coming months depending on consumer demand.

The import of sugar will not affect farmers. We have to serve the interests of more than 80 million of consumers when deciding to import sugar to stabilise domestic sugar prices.—VNS