Greece has offered to buy sugar from Myanmar at US$400 per tonne per month on a free on board (FOB) system. The offer has sparked interest in the industry, as under FOB, the buyer will take delivery of the commodity as soon as the shipments leave the supplier’s shipping dock. Local traders consider these terms favourable.
It is the first time Greece has offered to import sugar from Myanmar since the government permitted the import and re-export of sugar to boost trade volumes in 2015.
In the past, sugar was mainly re-exported to China. However, to curb concurrent illicit exports that were taking place at the border, China placed a limit on sugar import volumes from Myanmar, and eventually banned all imports in September 2017, leading to the current glut.
Current, there are nearly 500,000 sugarcane farmers working for 23 sugar factories in the country. The farmers have also requested that government limit sugar imports as long as there is a surplus. Sugar imports have since been restricted. Although sugarcane is usually ground and processed in November, the local sugar factories started this year’s grinding process in December.
Source: Myanmar Times