Economy

China pledges to enhance sugar market regulations

(Xinhua)
Updated: 2010-10-25 06:40

BEIJING - China's Ministry of Commerce (MOC) vowed to step up regulation of sugar markets on Sunday after reserves helped stabilize prices which recently rose to a record high amid continuing harsh weather.

Between Oct 10-17, the retail price of small-packed sugar averaged 7.68 yuan per kilogram in major cities, up 1.3 percent from the end of September, according to data provided by the MOC.

Related readings:  Cost of sugar leaves bad taste in mouth  Sugar stockpiles released to stem price hikes  China to auction sugar reserves to curb soaring price  China to sell sugar reserves to make up possible short supply

It shows that prices have begun to stabilize, according to the MOC website. The ministry also vowed to strengthen market regulations.

China auctioned 210,000 tons of sugar reserves on Oct 22 in a bid to curb soaring prices, which have been blamed on this season's frequent extreme weather in China's major sugar-producing areas, as well as reduced supplies overseas.

In Southwest China's Guangxi Zhuang autonomous region, the country's major sugar-growing area, sugar prices hit a record 6,000 yuan per ton ($902.3) on Oct 11.

Further, sugar futures hit an eight-month high of 683.20 pounds per ton in London on Oct 15.

Also, the MOC said government reserves remain abundant and pledged to improve market supplies and ensure the public's needs.

Between October 2009 and September 2010, eight batches of reserve sugar, or a total of 1.71 million tons, were auctioned, according to the MOC.