Sugarcane farmers and sugar producers plead for government action as input costs rise and profits shrink

On the afternoon of 15 April 2026, the Dak Lak Farmers’ Association, in cooperation with the Vietnam Sugarcane Industry Association, held a conference in Son Hoa commune, Dak Lak province, to hear opinions and aspirations from cane growers. The event drew local leaders, several Members of Parliament, sugar producers including KCP Vietnam Industrial Co., Ltd. and Tuy Hoa Sugarcane and Sugar Joint Stock Company, and more than 250 cane farmers. The conference served as a forum for farmers, businesses and authorities to exchange ideas, address difficulties, and raise concerns related to inputs, outputs and long-term livelihoods in cane farming.

Loss-making mills and pressure on cane prices

Opening remarks by Vo Duy Kha, Vice Chairman of the Dak Lak Farmers’ Association, highlighted that sugarcane has long been a key source of income for many households in the region. He said price fluctuations, input costs, weather and market conditions directly affect growers. Farmers are facing rising input costs, high labor costs, unusual weather, unstable yields, limited mechanization and increasing smuggling of sugar. Most worrying, he said, is that cane purchase prices do not ensure profitability, weakening farmers’ confidence to continue production.

The association called on mills, sugar producers and local authorities to coordinate support for farmers and to recognize and address these concerns.

Domestic demand vs. legally supplied volumes

The conference cited figures on the domestic sugar market: annual sugar consumption is estimated at about 2.4–2.5 million tonnes, while legally supplied volumes are only 1.5–1.6 million tonnes. The remaining 850,000–1 million tonnes, participants said, comes from unofficial sources, mainly smuggling.

Industry outlook: growth after mid-2025 directives, then a market reversal

Nguyen Van Loc, President of the Vietnamese Sugarcane Industry Association, said the sector has faced persistent difficulties despite government directives issued since mid-2025. He noted that after a rebound supported by import protection and anti-dumping measures, the sector recorded positive growth, particularly in the 2023–2024 crop year when cane prices were high.

However, from 2025 to the present, he said the market deteriorated: inventories rose, consumption slowed and mills were forced to lower cane purchase prices. At the same time, he said cane yields per hectare improved significantly, narrowing the gap with regional peers and potentially creating a foundation for competitiveness.

Falling sugar prices, weak corporate profits and reduced cane purchases

Speakers said sugar prices have fallen sharply, leaving corporate profits at around 10% or lower, with many units operating at a loss. Domestic sugar prices, participants noted, are much lower than those in countries such as the Philippines and China. Large stockpiles, they said, are adding pressure on businesses and increasing the risk of bankruptcy.

As a result, many companies reduced cane purchases by about 250,000 dong per tonne compared with previous crop years, with current cane purchase prices reported at just over 1 million dong per tonne.

Smuggling complexity and uneven market management

Participants said smuggling has become more complex, particularly in border provinces adjacent to Cambodia. They cited that Thai sugar exports to Laos and Cambodia have surged, with suspected diversion into Vietnam, while seizure rates remain low. Market management, they said, is uneven: traceability rules are not effective, and the auctioning of confiscated sugar can unintentionally legalize smuggled goods due to opaque documentation. Unofficial cash-based transactions, intended to evade taxes, are also described as widespread, contributing to a large underground economy.

Calls for policy extensions and stronger enforcement

Authorities and the association urged several measures, including extending anti-dumping and anti-subsidy measures on imported sugar (notably from Thailand), rationalizing taxation of corn syrup (HFCS), and strengthening enforcement against smuggling and commercial fraud, particularly in restricted zones.

Farmers’ concerns: falling cane prices vs. rising costs

At the conference, farmers shared firsthand accounts. Doan Van Phuc, a cane grower from Son Hoa, said he has farmed sugarcane for 28 years. He noted that Son Hoa was once a difficult area, but living standards improved as farmers worked with KCP Vietnam and benefited from supportive factory policies. He said yields rose to over 80 tonnes per hectare. In the last two years, however, he said cane prices paid to farmers have fallen while input costs have increased, with current prices hovering around 1 million dong per tonne and squeezing margins.

Phuc and other farmers called for two urgent actions: (1) strengthen controls to block sugar smuggling from Thailand via Laos and Cambodia into Vietnam; and (2) extend anti-dumping and anti-subsidy measures on imported sugar for another five years.

Governance and protection gaps

Doan Ngoc Vien, a 42-year cane farmer, said the core issue is not lack of competitiveness but the absence of robust protective mechanisms and proper enforcement to defend the industry. Comparing Vietnam with Thailand and China, he said those governments protect the sector more vigorously, while Vietnam’s support remains limited.

Scale of participation and risk to livelihoods

About 250 cane farmers attended the conference. They emphasized smuggling, low domestic sugar prices and difficulties selling locally produced sugar. They warned that if the situation persists, many cane growers could be forced out of the market and livelihoods could be at risk.

Speakers also described the challenge as systemic rather than limited to individual enterprises or farmers. Without decisive measures, they said, more than 200,000 cane-farming households and numerous sector players could face survival challenges.

Industry warning: an acute period driven by oversupply and smuggling

In closing, industry stakeholders warned the sector is entering an acute period due to oversupply and smuggling. They called for strengthened anti-smuggling actions, a clear and robust policy framework to safeguard the cane and sugar industry, and decisive enforcement to end lax oversight.