Secretary General of Guangxi Sugar Association: An interview with local reserves of sugar

Concerned about the general situation in the employment sector in Guangxi sugar reserves of local reserves interviewed Guangxi Sugar Association Secretary General:

Q: Secretary General Zhang, local reserve sugar storage has been started for more than a week. What is the situation?

A: Actually it was not more than one week. As early as before the Spring Festival, when the price of sugar fell to 3,580 yuan/ton, we had already collected tens of thousands of tons. However, after the Spring Festival, when the price of sugar rose to around 3,800 yuan/ton, it was already sold. It is this one sale that has inspired us. The country’s sugar production increased by a large margin this crop season. The industry generally talked about the price of sugar falling to 3,500 yuan/ton, or even lower. We have made preparations for this situation, and in a word, it is a "dynamic" reserve.

Q: What is a "dynamic" reserve?

A: Simply put, when the price of sugar drops to around 3,600 yuan/ton, the government first buys sugar as a reserve sugar from the sugar company, and sells the reserve sugar when the price of sugar is appropriate. This way, the reserve sugar is “negative”. . When the price of sugar once again fell below 3,600 yuan/ton, we commissioned sugar production companies to collect money online to make up for stocks of sugar.

Q: Is this operation risky?

A: There is certainly risk, but the risk is not great. Because we are less than 3,600 yuan / ton income, higher than 3,600 yuan / ton commissioned sugar companies to sell. Because as long as the price is stable, the sugar companies sell more sugar each day than the amount of storage and storage. To tell the truth, our reserves of sugar are currently "negative", except that we have not yet paid the revenue. Therefore, the industry calls for us to publish data for storage and storage. It cannot be announced. In fact, local purchasing and storage methods are more flexible, and there is also support from sugar companies. During this period, our purchasing and storage price was about 3,590 yuan/ton, and there was also a slight profit. "Dynamic" collection and storage is indeed a "two birds with one stone" thing, which stabilizes the price of sugar and has a little profit.

Q: Is "dynamic" storage going to the new crop season?

A: Look at the situation. In general, the situation is basically clear by the end of September.

Q: Do you think the situation will be clear by the end of September? What do you think?

Definitely. I think this year is very similar to last year. The inventory in the sales area is even less than last year. Our sugar companies seized the opportunity to sell large quantities of sugar to prepare for the next season. At present, the sales season has arrived. As long as the price of sugar is stable, the sales volume will increase substantially. As of yesterday (June 18), Guangxi Sugar Enterprise sold 50,000 tons of sugar a day. Two of the groups sold more than 23,700 tons of sugar. In the case of the May Day holiday in May, Guangxi sold 617,000 tons of sugar. From the current shipments of waterways, railways, and motor transport, it can be seen that as long as the price of sugar is stable, I believe Guangxi's sales in June will definitely increase significantly from May. In this way, in addition to the amount of sugar put by the State Reserve last year, the increase in production this year will basically be completed before the end of June. Therefore, we must take decisive and effective measures to stabilize the price of sugar. How do we look forward to the future!