On August 3, the Department of Agriculture and Environment of Gia Lai province said that some proposals to continue expanding sugarcane raw material areas of large companies in the area are not currently consistent with reality.
Ayun Pa sugar factory (under Agris Gia Lai Agricultural Joint Stock Company) proposed expanding the scale of raw material areas, converting cultivation on barren land to sugarcane cultivation.
However, according to the Department of Agriculture and Environment, in the agricultural restructuring plan in the province for the period 2021-2025, the area of sugarcane trees is only calculated to remain at 38,000 hectares.
The expansion of sugarcane raw material areas (mainly in the western communes of Gia Lai) is not in line with the province's agricultural development orientation.
The Department of Agriculture and Environment assessed that the province does not encourage people to grow sugarcane outside the local planning and planning areas, to avoid the situation of "losing prices in the crop" - when supply exceeds demand, prices will decrease, affecting people's profits and economy.
Currently, Ayun Pa Sugar Factory, one of the large-scale factories, has an area of 18,566 hectares of raw material, with a designed pressuring capacity of up to 8,000 tons of sugarcane/day.
Gia Lai requires sugar factories to sign contracts for the production and consumption of sugarcane directly with people from the beginning of the crop; the contract must ensure the principle of equality, benefiting both sides.
Mango factories are not allowed to compete or encroach on each other's raw material areas, and at the same time, they must share risks with people so that they can feel secure in production and stay with businesses for a long time.
Previously, when working with the leaders of Gia Lai province, representatives of the Ayun Pa Sugar Factory proposed to convert ineffective crops in areas such as Ia Hur, Ia Rsai, Phu Tuc - areas of deposited and underdeveloped sugarcane - to raw sugarcane cultivation.
This is to serve the goal of increasing the sugar factory capacity from 8,000 tons of sugarcane/day to 10,000 tons of sugarcane/day in the 2027-2028 crop year.
