The Government has agreed with the Ministry of Industry and Trade to putsugar import within quota out for tender in 2016 instead of allocatingit in order to ensure transparency.

Deputy Prime Minister HoangTrung Hai has asked relevant ministries and organisations, including theMinistries of Industry and Trade, Finance, Agriculture and RuralDevelopment, as well as Vietnam Sugarcane and Sugar Association to raisea tender mechanism for sugar import in line with commitments to theWorld Trade Organisation.

Sugar import management policies for the coming years will be laid based on the results of the pilot tendering of sugar import.

Forthe import quota of 81,000 tonnes of sugar this year, the allocationmethod will still be applied, but the amount of crude sugar to beimported for processing at domestic plants will be increased.

VietnamSugarcane and Sugar Association had, for many years, proposed to removethe allocation of sugar import quota as, according to the association,it causes unhealthy competition in the sector.

According toNguyen Hai, the association's general secretary, the tender mechanismfor sugar imports will create transparency and harmonise benefits forfarmers, sugar plants, and companies using sugar as a raw material.

Haiproposed that only crude sugar should be allowed to be imported. Headded that bidders should not just be sugar plants and companies usingsugar for production but trade companies as well.

According toAgro-Forestry, Seafood Processing and Salt Industry Department under theMinistry of Agriculture and Rural Development, the total sugar outputof the 2014-15 crop was 1.4 million tonnes, 13 percent less than theprevious crop.

As of mid-June, sugar inventories reached 389,440 tonnes, 159,500 tonnes lower than a year ago.-VNA