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China's sugar output down 12.9% in Jan-May period

(Xinhua)
Updated: 2009-07-18 11:42

The output of China's sugar producers fell 12.9 percent year on year to 9.7 million tons during the first five months, said the Ministry of Industry and Information Technology in an online statement.

The fall was a result of poor sugarcane production, typhoons and floods in major production bases in south China's Guangdong province and Guangxi Zhuang autonomous region, the ministry said.

More than 12 million tons of sugar was produced during the 2008/2009 crop year by mid-June, down 2.38 million tons, or 16 percent, year on year.

Sugar producers suffered losses of 260 million yuan ($38.07 million) in the first five months due to falling prices and rising stockpiles.

But analysts expected price would pick up as the peak sales season would come and sugar producers might wipe out losses by the end of this year.