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Chinese sugar producers are actually hoping for a taste of win already next week. It’s because the country’s government is ready to deliver its verdict on sugar import duties. Moreover, the government enhances its crackdown on rampant smuggling, which occurs along ancient trade routes.
China's Commerce Ministry is expected to release its first ruling on a months-long investigation into raw as well as refined sugar imports on Monday. By the way, the authorities have already suggested hefty tariffs in a draft ruling.
An enormous lift in duties by the world's number one sugar importer would appear to be a devastating blow for top notch producers, including Brazil and Thailand.
Nevertheless, it would provide a much-required reprieve to millions of small farmers as well as state-owned producers, including Cofco Tunhe Co and Nanning Sugar Industry, who argue cheap imports have generated billions of dollars of losses and provoked output cuts.
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