MofCom to strengthen regulation of sugar markets

China’s Ministry of Commerce (MofCom) said Sunday it will strengthen regulation of sugar markets to ensure price stability, state media reported. Retail prices of sugar hit record highs recently due to extreme weather in China’s major sugar producing regions. On October 11, sugar prices hit a record RMB6,000 (US$902) per ton in Guanxi Zhuang Autonomous region. Four days later, sugar futures set an eight-month high on the London exchange. In response, China auctioned 210,000 tons of its sugar reserves on Friday to stabilize prices. MofCom has pledged to improve market supplies to control the effect of weak sugar harvests on consumer prices. Between October 10 and 17, retail prices for sugar averaged RMB7.68 (US$1.15) per kilo in major cities, up 1.3% from the end of September, which MofCom says indicates that prices are already stabilizing.