Decision No. 26/2007/QD-TTg Approving the Master Plan for Sugarcane and Sugar Development until 2010 and Orientations until 2020

Pursuant to …;

Approve the Sugar Cane Development Plan to 2010

and orientation to 2020

_____________________________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Considering the proposal of the Minister of Agriculture and Rural Development.

DECISION:

Article 1Approve the Sugar Cane Development Plan to 2010 and orientation to 2020 with the following main contents:

I. DEVELOPMENT VIEWS

1. Developing sugar cane production in the future must ensure economic and social efficiency and sustainability, protect the ecological environment, be consistent with the planning for agricultural structure transformation and rural economy towards industrialization and modernization.

2. Develop sugar cane production based on synchronous development from raw material production, processing factories, post-sugar product production to circulation and consumption of products; gradually expand the capacity of existing sugar factories towards modern technology and advanced equipment.

3. Encourage various economic sectors to invest in developing sugar cane, linking the interests between processors and raw material producers, promoting the construction of new rural areas.

4. The State will support part of the investment in infrastructure development such as transportation and irrigation in concentrated sugar cane regions; research, transfer scientific and technological progress to enhance productivity, quality, and efficiency of sugar cane production.

II. DEVELOPMENT TARGETS

1. By 2010

a) Sugar Production:

- Sugar output: 1.5 million tons, including industrial sugar at 1.4 million tons (670,000 tons of refined sugar and 730,000 tons of white sugar), artisanal sugar at 100,000 tons (equivalent to white sugar).

- Total designed capacity of factories: 105,000 tons of cane per day, of which four key regions for sugar cane development have a total factory capacity of 86,000 tons of cane per day (accounting for over 82% of the national capacity). Specifically:

+ North Central Region: total factory capacity is 35,000 tons of cane per day;

+ Coastal Central and Central Highlands Region: total factory capacity is 16,300 tons of cane per day;

+ Southeast Region: total factory capacity is 14,900 tons of cane per day;

+ Mekong Delta Region: total factory capacity is 19,800 tons of cane per day.

b) Raw Material Sugar Cane Production:

- Total area under sugar cane cultivation: 300,000 hectares, of which concentrated raw material areas are: 250,000 hectares.

- Average cane yield: 65 tons/hectare.

- Average sugar content: 11 CCS.

- Cane output: 19.5 million tons.

- Four key regions for sugar cane development have a total area under cane cultivation of 222,000 hectares (accounting for 74% of the national cane area). Specifically:

+ North Central Region: total area under cane cultivation is 80,000 hectares;

+ Coastal Central and Central Highlands Region: total area under cane cultivation is 53,000 hectares;

+ Southeast Region: total area under cane cultivation is 37,000 hectares;

+ Mekong Delta Region: total area under cane cultivation is 52,000 hectares.

2. Orientation for Development to 2020

By 2020, sugar production should meet domestic consumption and export needs, with a production level of about 2.1 million tons, including: refined sugar at 1.5 million tons, white sugar 500,000 tons, artisanal sugar 100,000 tons.

Intensify the area under current sugar cane cultivation, expand the area where conditions permit, following the direction of planting new sugar cane varieties, applying advanced farming techniques, and investing in irrigation. By 2020, the total area under sugar cane cultivation will be approximately 300,000 hectares, with an average cane yield reaching 80 tons/hectare, average sugar content 12 CCS, and cane output reaching 24 million tons; the total designed capacity of factories will be around 120,000 tons of cane per day.

III. MAJOR SOLUTIONS

1. Planning:

a) People's Committees of provinces with sugar factories shall take the lead in coordinating with the Ministry of Agriculture and Rural Development to direct the review, adjustment, and approval of the provincial raw material development plan; adjust, supplement, and plan the raw material region for each factory in accordance with the development plan for processing facilities;

b) No new sugar factories will be built. Existing sugar factories will gradually invest in deepening, modernizing, and reasonably expanding their current capacity in line with the raw material region and market; improve overall recovery efficiency, product quality, reduce environmental pollution, contributing to lowering product costs, enhancing production efficiency and competitiveness; diversify products such as alcohol, electricity, bio-fertilizers, candies, etc., to enhance production and business efficiency.

2. Building Raw Material Regions:

a) Implement comprehensive measures regarding seeds, intensive farming techniques, infrastructure investment, mechanization... to rapidly increase cane productivity and quality;

b) People's Committees of provinces with sugar factories shall direct factories and all levels to develop sugar cane raw material regions according to the approved plan, ensuring sufficient raw materials for the pressing capacity of factories; rapidly expand the area of high-yielding and high-sugar-content new sugar cane varieties; intensify farming, improve cultivation techniques, implement irrigation methods in suitable areas; direct and guide factories to establish projects to develop raw material regions in line with the plan; provide policies to support infrastructure investment (irrigation, transportation) in raw material regions; support and encourage farmers to consolidate land and exchange plots to form concentrated raw material production regions;

c) Factories and sugar cane processing facilities must have plans to develop raw material regions for their units in line with the approved plan; have specific solutions and policies to support sugar cane growers in developing concentrated raw material regions, applying intensive farming techniques and mechanization in production, to improve cane productivity and quality and sign contracts to consume cane with sugar cane growers or organizations representing sugar cane growers.

3. Regarding Science and Technology:

a) The Ministry of Agriculture and Rural Development will soon implement and complete the Three-Level Sugar Cane Breeding Project "Developing Sugar Cane Varieties for Factory Raw Material Regions for the 2003-2008 Period"; build a research system and sugar cane seed centers with appropriate equipment and staff capabilities to independently produce high-quality seeds with high yields and sugar content to meet production requirements. While researching and selecting varieties, there will also be programs and plans to import high-yielding and high-sugar-content sugar cane varieties for testing and rapidly multiplying tested varieties that are suitable for Vietnam.

b) Strengthen agricultural extension work (state agricultural extension, corporate agricultural extension), training, guidance, and model construction to quickly transfer new seeds, advanced farming methods, and scientific and technological progress to farmers. The Ministry of Agriculture and Rural Development and localities allocate budget funds from the crop seed, livestock seed, and aquatic seed programs for the development of sugarcane seeds according to approved projects and sugarcane agricultural extension activities.

c) Develop and promulgate intensive cultivation procedures suitable for each ecological region, organize rapid guidance on transferring these procedures into production, enhance investment in intensive cultivation, and improve sugarcane yield and quality.

d) Sugarcane factories should promptly complete modern production management systems and quality assurance at sugar factories to ensure food safety and meet international economic integration requirements. By 2010, all sugar factories will meet ISO management standards.

4. On investment:

a) State budget support: import and breed new sugarcane varieties; invest in water reservoirs, major irrigation works (first and second level canals) and transportation within concentrated raw material areas. Provincial People's Committees have plans to use local budget funds for infrastructure investment outside factories and outside raw material areas.

b) Implement policies to mobilize capital from other legitimate sources along with state support capital to build comprehensive infrastructure (transportation, irrigation, paddy field improvement...) for concentrated raw material areas, increase productivity, quality, and reduce transportation costs for sugarcane. Invest in irrigation for sugarcane areas where conditions and water sources are available, striving to reach over 40% of sugarcane area irrigated by 2010.

c) Encourage sugar factories to support farmers in investing in mechanization from land preparation to sugarcane harvesting, etc., to increase labor productivity and address labor shortages.

5. On consumption and trade promotion:

a) Annually, the Ministry of Agriculture and Rural Development reports on the plan to balance production and consumption to adjust production appropriately; the Ministry of Trade leads and coordinates with the Ministry of Agriculture and Rural Development and the Vietnam Sugar Association to manage domestic sugar consumption appropriately to avoid price fluctuations.

b) Sugar factories strictly implement contracts with sugarcane growers according to Decision No. 80/2002/QD-TTg of the Prime Minister and the cooperation regulations in sugarcane and sugar production, consumption between factories and companies.

c) The State encourages and creates conditions for sugar factories and companies to build brands and labels for goods and strengthen trade promotion for sugarcane and sugar.

6. On production organization:

a) Complete the ownership conversion and financial settlement for sugar factories according to Decision No. 28/2004/QD-TTg of the Prime Minister.

b) Encourage and create conditions for the establishment of cooperatives for sugarcane production, services, and consumption by farmers; innovate and improve the effectiveness of existing cooperatives in the sugarcane industry.

c) Enhance the role and effectiveness of the Vietnam Sugar Association to properly coordinate sugar factories in consumption, market information, forecasting, trade promotion, science and technology, and sugarcane and sugar consumption, moving towards proactive market regulation, stabilizing the market, ensuring benefits for businesses, farmers, and consumers; establish a production insurance fund for sugarcane.

IV. IMPLEMENTATION

1. The Ministry of Agriculture and Rural Development shall lead and coordinate with relevant ministries, sectors, and provincial people's committees to guide, direct, and inspect the implementation of planning; timely update market information, scientific and technological progress to make appropriate adjustments to the planning.

2. Provincial People's Committees with sugar factories are responsible for approving and directing the implementation of sugarcane planning in accordance with this planning; direct and inspect the signing and implementation of contracts between factories and sugarcane growers and the implementation of cooperation regulations in sugarcane and sugar production and consumption among factories in their jurisdiction; handle disputes over buying and selling raw materials, maintain stability in the locality.

Article 2. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, and chairmen of provincial people's committees related to this matter are responsible for implementing this Decision./.