Since the beginning of year 2005/2006 sugar refining period, the southern sugarhouses postpone press time, which causes sugar market speculation and the international sugar prices rise high. As a result of a part of sugarhouses reluctant to sell, recently the sugar prices in domestic markets increase sharply. Compared with last year, sugar prices in both producing regions and sales regions increase more that 60 percent. The rising prices have not only intensified difficulties of administration on sugar cane areas, and impact regular production of sugarhouses, but also restrained sugar consumers, done harm on stability of market prices, injured interests of sugar farmers, and adversely affected healthy development of sugar industry.

For the purpose of stabilizing sugar price and ensure market supply, together with related departments, National Development and Reform Commission and Ministry of Commerce decide to release the state raw sugar reserve, which will be processed into processed sugar as soon as possible and put into market.

Currently, it is at peak of sugar production, the tight market supply is temporary. Sugarhouses should be aware of market risk and sell products according to market prices. China Sugar Industry Organization should strengthen guide on information and improve self-discipline mechanism of the industry. Governments of main sugar producing regions should enhance administration and effectively carry out related measures to promote the healthy development of sugar materials production and sugar industry.

National Development and Reform Commission
Ministry of Commerce
Dec 16, 2005