GOVERNMENT INTERVENTION IN SUGARCANE 1

VIETNAMESE GOVERNMENT INTERVENTION IN SUGARCANE

ON THE LOCAL ECONOMY AND EXPORTING

Student’s full name: Tran Quang Hung

Student ID: GBS210839

University of Greenwich (Vietnam)

GOVERNMENT INTERVENTION IN SUGARCANE 2

GOVERNMENT INTERVENTION IN SUGARCANE

Table of Contents
Abstract ................................................................................................................................................. 3
I. Introduction ................................................................................................................................... 4
II. Rationale .................................................................................................................................... 4
III. In depth-analysis ........................................................................................................................ 5
1. The difficult times in sugar-cane agriculture produce .............................................................. 5
In 2019............................................................................................................................................ 5
In 2021-2022 (After the Covid-19 disease) .................................................................................... 6
2. The cause of reality troubles.......................................................................................................... 7
A. The effect of price as well as erratic weather .......................................................................... 7
3. Government interventions & solutions ......................................................................................... 8
IV. . Evaluation of Government interventions & solutions ......................................................... 8
V. Conclusion......................................................................................................................................... 9
VI. Reference list ................................................................................................................................... 9
GOVERNMENT INTERVENTION IN SUGARCANE 3

Abstract
One of the most important and practical crops for many processing and exporting enterprises is
sugar cane. Additionally, the crop area and quality of sugarcane products have significantly
decreased throughout the three years before and following the pandemic. The purpose of this
study is to identify particular challenges and influences that impact sugar cane export and
quality. At the same time, the government stepped in to help sugarcane farmers and provided
remedies to assure complete economic circumstances if the crop was destroyed. Restoring
sugarcane prices and protecting the quality of agricultural goods for the public is crucial given
the pressure on pricing from Asian nations and the expanding Thai market. As a result, policies
have been released by the government, but because they are still transitory, stability will take
longer time.

Keywords: sugar cane, state, export

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I. Introduction
Vietnam’s Produces are being evaluated for high quality in exporting. Furthermore, Vietnam is
developing to expand into foreign when local goods are more redundant; however, some
commodities cannot easily be exported because of the trouble of quality through the process of
growing. Especially, sugar-cane is one of the largest dilemmas for farmers and exporting which
faces lots of problems such as bad weather. According to Thoi bao Ngan hang news (2019),
sugar-cane producers are affected badly by mishaps and this leads to the production not being on
time so the exporting will be canceled and farmers' lives are more difficult.

In this paragraph, the difficulty will be analyzed and explored so that the options to solve the
trouble of sugar cane can be discussed. From my view of point, I expected policies for sugar
cane and hoped that farmers can export on time because the cane is an extremely important
product for exporting as well as local consumption

II. Rationale
I can assert that sugar cane has belonged of the most important products in local agriculture. The
cane is employed for lots of things such as cooking, baking, etc. which makes cane like
unchanged raw materials and products in the culture of Vietnamese. Recently, the cost of sugar
cane has been reduced in the international as well as the local market because of weather
disasters and low-quality goods that cannot be exported. As a result, after the disease Covid-19,
in the year 2021 compared to the prior year, the entire commune only planted 1.8 hectares of
sugarcane in 2022, a 75% drop (Thanh Phuc, 2022). This paragraph will analyze and describe the
seriousness of the current sugarcane issue and evaluate the success of government action in the
distribution and support of farmers through better policies.
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Figure 1: The selling price at the field currently ranges from 7 - 7.5 million / ton, 3 times higher
than every year. Source: Thanh Phuc, 2022

III. In depth-analysis

1. The difficult times in sugar-cane agriculture produce

In 2019

The country's main sugarcane granary has long been thought of as being in the Central
Highlands. People here often rely only on sugarcane and view it as a plant that may reduce
poverty. However, in recent years, as the workers themselves have problems, the price of sugar
has consistently declined. Besides that, sugar cane is being burned by fire when the weather
cannot overcome it, leading to drought which reduces the areas for growth.

In the 2018-2019 season, more than 1 hectare was harvested, and the remaining 7 hectares were
set afire. The family is currently assembling workers to detonate the entire region to lessen the
damage. Growers in the eastern regions of this method in the remainder of Gia Lai province must
contend with bulk harvests of lower quality. Gia Lai has a total area of farmed sugar in the
districts and cities of the Eastern province of over 27,000 hectares, according to information
from the agriculture sector of the province. Comparing this area to the 2017–2018 crop year, a
loss of more than 2,000ha was observed. In this, An Khe town has 2,921 ha; Kbang 10,114 ha;
Dak Po 7,160 ha; and Krong Chro district has 7,091 ha... (Chi Thien, 2019).
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Figure2: Sugarcane growers are facing a plethora of challenges. Source: Chi Thien, 2019.

In 2021-2022 (After the Covid-19 disease)

The price of juice in the 2021 sugarcane harvest "bottomed out," so this year, the number of
persons in the planting region significantly reduced, the production also decreased, and the
purchase price was three to four times more than the song. who lack sufficient cane to apply to
the school (Baonghean, 2021). As a result, people's strength declined. The entire commune only
planted 1.8 acres of sugarcane in the 2022 harvest, a 75% reduction from the year before (Mr. Le
Thanh Son - Chairman of the Farmers' Association of Giang Son Dong commune, 2021). From
that situation, the areas which grow sugar cane are now declining. Sugarcane is a crop that many
villages in Tam Duong and Phong Tho districts see as a vital tree in economic growth, along
with banana trees and passion fruit trees. Due to the involvement of enterprises and society, the
tale of "excellent crop - shortage of head" no longer gives farmers nightmares. As many items
from the province can be "border," you should remove inquiries regarding export protocols due
to equipment requirements (Hong Tham-Ngoc Duy, 2022).
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Figure3: Although the cost of sugar cane is higher, farmers did not have enough to export to the
market. Source: Thanh Phuc, 2022.

2. The cause of reality troubles

A. The effect of price as well as erratic weather

Recently, Vietnamese farmers must stand the blast of bad weather when the amount of rain drifts
to the total sugar cane fields. According to ANTV news (2019), Ms. Cao Thi La Ban who lives
in Khanh Nam Commune, Khanh Vinh District, Khanh Hoa, said that the sugar cane has not yet
been harvested, and the roads are muddy and wet, drifting away so that the life of agricultures
are more difficult to front weather. Khanh Nam district has more than 500 hectares of sugarcane
and more than one hundred households in the community; however, this time is for cropping but
the fields of sugar cane are not ready to harvest. Now, canes are still in the fields, meaning
farmers’ income is empty until the Tet holiday. Khanh Nam Commune People's Committee Vice
Chairman Dang Thanh Nhan from Khanh Vinh District, Khanh Hoa said: "There was a
protracted flood after the year after a drought at the beginning of the year. The harvest season has
not yet begun at the two sugar plants. Because of this, people's lives are challenging, especially
when Tet draws near”. Secondly, farmers who are growing sugar cane still face other disastrous
weather such as burning when the temperature is hotter so that the sunlight extends more in lots
of districts. According to the information on the province’s agricultural sector, Gia Lai has a total
of roughly 27,000 hectares of sugarcane planted in the eastern districts and towns crop year when
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compared to the crop, this area has shrunk by more than 2,000 hectares. It has An Khe town
2,921 ha, Kbang 10,114 ha, Dak Po 7,160 ha, and Kong Chro district 7,091 ha.

Weather is the biggest obstacle, affecting the production activities of factories. At the beginning
of the year, there was a drought, and sugarcane did not grow. At the end of the year, there is a lot
of rain, so up to now, sugarcane is still in the development stage. According to Khanh Hoa Sugar
Co’s leader, recent weather developments are still complicated. If harvested at this time, it will
cause a great loss to the income of farmers. At the same time, the process of transporting
sugarcane when many roads are damaged due to the influence of rain and floods will disrupt the
structure of traffic routes. The weather will affect the quality and amount of sugar cane, the total
will be declined and the shortage of sugar cane cannot be exported to the marketplace which will
lead to a loss in the output price (ANTV news, 2019).

3. Government interventions & solutions

With this hard situation, farmers are facing lots of difficulties such as the source of revenue, life
conditions, etc. In addition, lands are being grown for sugar cane which will be reduced if they
did not have any plan for better crops.

Fortunately, some districts are developing lots of methods to improve the quality of sugar canes
with the activity of cooperation in local districts as well as operating more companies to motivate
the process of sugar canes to export on time. For instance, farmers are being helped by the
method of selling their trees to An Khe Sugar Factory for 800,000 VND for each ton of 10 sugar
cane. In case, the field purchase price is 700,000 VND per ton plus an additional 100,000 VND
per ton to cover transportation expenses. The cost is down 20–30% from earlier offerings. This is
the management machine's leader, and it has caused the market price to drop from 12,000 VND
per kilogram to 10,000 VND per kilogram as of right now (Chi Thien, 2019).

According to Minh Hien (2017), The Prime Minister charged the Ministry of Agriculture and
Rural Development with leading the effort to start assembling the Government to issue a Decree
promoting synchronous mechanization in agriculture, as well as coordinating with agencies,
units, and communities. based on the Prime Minister's Decision No. 68/2013/QD-TTG from
November 14, 2013, regarding the costs of supporting the value reduction policy in agriculture;
Prioritise the arrangement of annual funding sources for the company to research new sugarcane
varieties and support the implementation of three-level sugarcane seed projects at key production
points; encourage mechanization and irrigation of sugarcane files; Production, research, and
processing to diversify products for the market.

IV. . Evaluation of Government interventions & solutions

Vietnamese farmers are always working to improve and motivate themselves, even though there
are still numerous challenges associated with both enhancing sugar cane quality and exporting
GOVERNMENT INTERVENTION IN SUGARCANE 9

cane. Additionally, a variety of government policies are starting to be more beneficial with a lot
of strong affection, such as the problem with reduced cane-growing regions, which is resolved
when certain manufacturers work with farmers to produce big amounts of cane. For instance, An
Khe factory agrees to cheap prices to allow the flow of sugar cane, ensuring the farmers' quality
of life in the face of a problematic crop.

The Government especially has some different policies to help farmers with hard crops.
Typically, they support the cost-value reduction policy in agriculture. In particular, the
government has implemented a variety of initiatives to ease the difficulties faced by farmers.
They typically cover both the expenditures incurred and the costs associated with agriculture. As
an expert suggests utilities for people, the State has prioritized distributing funding to assist
sugarcane producers in researching new sugarcane varieties and numerous supporting policies in
production and export. Perhaps, policies cannot solve all of the trouble about cane but I witness
that the solution plays an extremely important role in difficulties over the period with farmers.
Moreover, people who are growing up and living with a cane can hope for the next better crops
when more policies are helping them in this difficult milestone.

V. Conclusion
Overall, this study sheds light on our nation's challenges to sugarcane production and exports, as
well as the impact this has on the living conditions of Vietnamese farmers. Farmers' costs have
not been mitigated by government action in this area after the post-Covid-19 economic recovery.
To successfully solve the crisis thoroughly and issue more support to farmers in particular and
Vietnamese agricultural products in general, we need more rules and careful guidance from
agricultural experts. industry, and at the same time promote each other to keep up in the export
process.

VI. Reference list

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thu-hep-gia-mia-ep-nuoc-tang-ky-luc-post256217.html (Accessed: 14 October, 2022).

Thi truong mia duong. (n.d.). http://thitruongmiaduong.com/. Available at:

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Thiện B. V. Ả. C. (2019, January 16). Nông dân trồng mía đối mặt với khó khăn. Thời

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voi-kho-khan-84172.html (Accessed: 13 October, 2022).

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Thời tiết bất lợi ảnh hưởng đến hoạt động sản xuất mía đường. (2017, January 14). Antv.

Available at: https://www.antv.gov.vn/tin-tuc/kinh-te/thoi-tiet-bat-loi-anh-huong-den-

hoat-dong-san-xuat-mia-duong-201818.html (Accessed 14 October, 2022).

Thương T. H. B. C. (2021, February 23). Nhìn lại bức tranh ngành mía đường Việt Nam

năm 2020 và triển vọng 2021. Báo Công Thương Điện Tử, Kinh Tế, Chính Trị, Xã Hội.

Available at: https://congthuong.vn/nhin-lai-buc-tranh-nganh-mia-duong-viet-nam-nam-

2020-va-trien-vong-2021-152663.html (Accessed: 19 October, 2022).

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