Decision No. 58/2005/QD-BNN Issuing the Regulation on Coordination in Sugarcane and Sugar Production and Consumption

DECISION OF THE MINISTER

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

Issuing Regulations on Coordination in Sugarcane and Sugar Production and Consumption

THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT

Pursuant to Decree No. 86/2003/NĐ-CP dated July 18, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decision No. 28/2004/QĐ-TTg dated March 4, 2004 of the Prime Minister on restructuring production and implementing certain measures to address difficulties faced by sugar factories and companies;

Considering the proposal of the Director of the Processing of Agricultural and Forest Products and Salt Industry Department,

DECISION:

Article 1. hereby promulgates these Regulations on Coordination in Sugarcane and Sugar Production and Consumption attached hereto.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette. All previous regulations of the Ministry of Agriculture and Rural Development that conflict with this Decision are hereby repealed.

Article 3. The Head of the Ministry’s Office, the Director of the Processing of Agricultural and Forest Products and Salt Industry Department, and all relevant organizations and individuals are responsible for implementing this Decision.

REGULATIONS

REGULATIONS ON COORDINATION IN SUGARCANE AND SUGAR PRODUCTION AND CONSUMPTION

(Issued together with Decision No. 58/2005/QĐ-BNN dated October 3, 2005)

of the Minister of Agriculture and Rural Development)

Article 1. Scope and Applicability

The Regulations on Coordination in Sugarcane and Sugar Production and Consumption (hereinafter referred to as the Regulations) stipulate the responsibilities and authorities of related parties involved in sugarcane and sugar production and consumption, applicable to all State-owned Joint Stock Companies, companies, and sugar factories (hereinafter collectively referred to as sugar factories), and the Vietnam Sugarcane and Sugar Association (hereinafter referred to as the Association), regardless of their organizational form or economic component.

Article 2. Purpose and Requirements

The Regulations on Coordination in Sugarcane and Sugar Production and Consumption provide for coordination in various stages of sugarcane and sugar production and consumption to address issues such as competing purchases and sales, market price undercutting, which cause losses to sugar factories, sugarcane growers, and consumers, thereby creating favorable conditions for the stable development of the sugarcane and sugar industry.

Article 3. Establishment of Concentrated Raw Material Areas

1. Sugar factories are responsible for coordinating with the Department of Agriculture and Rural Development to review and develop specific plans for concentrated raw material areas down to the village level, to be submitted for approval by the Provincial People's Committee; they must have approved projects for establishing concentrated raw material areas and are responsible for proactively establishing such areas to ensure sufficient raw materials for factory operations. To ensure the stable development of raw material areas, sugar factories must proactively enter into product purchase contracts with sugarcane growers in accordance with Decision No. 80/2002/QĐ-TTg of the Prime Minister and implement appropriate policies and measures.

2. In cases where multiple factories invest and purchase raw materials in the same area, the local Department of Agriculture and Rural Development is responsible for leading the review and unification of the division of areas among the factories, to be submitted for approval by the Provincial People's Committee for specific planning down to the village level for each factory.

3. The provincial-level People's Committee is responsible for directing the establishment of concentrated sugarcane raw material areas within its jurisdiction; planning the area for sugarcane cultivation to ensure sufficient raw materials for the factory to fully utilize its capacity according to the approved project and expand according to the industry's development plan; and implementing support policies for factories and farmers to establish raw material areas in accordance with the plan.

Article 4. Purchase of Sugarcane

Factories may not enter into investment and purchase contracts in areas already planned for other factories. Based on the specific situation in each area, before the start of the season, the Association is responsible for convening meetings of factories in the region to discuss and agree on floor prices, ceiling prices, and cooperative purchasing measures to ensure the interests of both factories and farmers.

Article 5. Seasonal Operations and Production Plans

1. Prior to entering the production season, sugar factories must report their entry schedule and production plan (quantity of sugarcane crushed, quantity of sugar produced during the season) to the Ministry of Agriculture and Rural Development for the purpose of balancing supply and demand and directing production. The Association is responsible for organizing meetings of sugar factories in each region based on specific circumstances, agreeing on the production start time for each factory to achieve the best results.

2. To ensure overall efficiency, factories may only commence production when the sugarcane has ripened and the average sucrose content of the sugarcane reaches 8 CCS or higher. In cases where consequences from natural disasters need to be addressed, permission from the People's Committee of the province is required, along with a report sent to the Ministry of Agriculture and Rural Development.

Article 6. Sugar Consumption

Depending on fluctuations in the sugar market, the Association organizes regular or emergency meetings of sugar factories to unify sugar consumption plans, maximum selling prices, and minimum selling prices to stabilize the market and protect the interests of factories and consumers.

Article 7. Inspection and Oversight

The Ministry of Agriculture and Rural Development and the People's Committees of provinces with sugar factories are responsible for directing relevant agencies to cooperate with the Association in monitoring, inspecting, and overseeing actions that indicate violations of the cooperation regulations in the production and consumption of sugarcane and sugar.

Article 8. Handling Violations

Any actions carried out contrary to the regulations, violating the resolutions of the Association regarding cooperative production and consumption of sugarcane and sugar, will be strictly dealt with according to current laws, in addition to being handled according to the Association's resolutions.

Article 9. Implementation Organization

1. The Association, under the direction of the Ministry of Agriculture and Rural Development, is tasked with organizing the coordination among sugar factories in production and consumption of sugarcane and sugar; it is responsible for convening meetings to issue joint resolutions on cooperative measures, making recommendations, and implementing measures to address organizations and individuals who violate the Association's resolutions and regulations. Once a joint resolution is issued, the Association is responsible for reporting to relevant Ministries, Departments, and localities to coordinate supervision and inspection.

2. The Ministry of Agriculture and Rural Development is responsible for reviewing proposals from localities and sugar factories during implementation to adjust and supplement the content of the regulations. Annually, there will be a summary evaluation of the implementation results of the regulations./.