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Chinese Government to Stabilize Sugar Prices

The Chinese Government ordered manufacturing and trading enterprises to stop stocking up sugar and raising its price on the Chinese market.

The State Development Planning Commission (SDPC) issued an urgent notice this week in order to stabilize sugar prices, which were intentionally driven up by some enterprises that stocked up sugar at the end of the present pressing season.

The SDPC pointed out in the notice that the demand and supply of sugar are generally equal at the domestic market. It predicts that sugar output will increase markedly during the coming pressing season and that the importation of sugar will also grow. Therefore the supply of sugar will be abundant during the next pressing season. The price of sugar will definitely drop, according to the SDPC.

The SDPC ordered the enterprises that had bought sugar from national reserves to sell it at consumption market instead of trading it at future markets.

The SDPC said that the government will sell national reserves of sugar and import more sugar to stabilize prices in the near future.

(Xinhua News Agency 10/02/2001)

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