Chinese Sugar Industry losing money

Beijing. April 28. Silkroadnews – Chinese Sugar Industry is currently losing money, as Xinhua informs.
Global supply of sugar exceeds global demand in last several years. This continues to drive sugar prices down. The price of 1 tonne of Chinese sugar has declined from 7 000 yuans to 4 000 yuans in 2013-2014 alone.
“As General Secretary of China Sugar Association reports, the losses that the industry has encountered since 2012 were unprecedented in in comparison to the last 10 years. The losses encountered by Chinese sugar producers in 2012-2013 production season are estimated at 3.1 bln yuans”, states te message published this Sunday.
Experts say these losses can be explained by the drop In prices for sugar cane, rise in prices for production materials, and rise in cost of labour. This cased farmers to quit growing sugar cane. Famers of the main Chinese sugar producing regions (such as southern provinces Yunnan and Guangxi) are now growing corn, eucalyptus, mulberry and cassava.