Typhoon damages China's sugar crop
may have been damaged by the typhoon that hit southern provinces
last week.
Typhoon Prapiroon killed 80 people in southern China and will also take its toll on the region's economy and key crops. Guangxi province, the country's largest sugar cane producing region, had been expected to increase sugar output by 2 million tonnes after a drought last year halved the cane crop. But an official at the Guangxi Sugar Association told Reuters that "between 5 and 10 percent" of the region has been affected by the heavy rains. The coastal area of Beihai was worst hit with 50 per cent of the crop damaged. He added that some sugar cane may continue to grow after water recedes. The Reuters report added that traders expect the Chinese government to halt its auctions of state reserve sugar, nine of which have already significantly reduced the price. Sugar prices have dropped to below CNY4,000 (€389.43) per tonne, 30 per cent lower than earlier this year.
