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The Chinese government is to release another 552,000 tons of sugar on to the market to stabilize rising prices, according to a China Securities Journal report on Wednesday.

 

The National Development and Reform Commission, Ministry of Finance and Ministry of Commerce jointly issued a circular on Tuesday announcing the release of 368,000 tons of state sugar reserves and 184,000 tons of imported Cuban sugar.

 

The sugar will be released on to the market through an auction.

 

State sugar, which has an auction base price of 3,800 yuan (US$475) per ton, would be released at 92,000 tons a month from June to September.

 

The Cuban sugar is to be auctioned after being processed in China.

 

As a result of short supply and soaring international prices, sugar prices in China have risen continuously since the end of last year, squeezing industries that have a high dependency on sugar.

 

Since April, China has put 600,000 tons of state sugar reserves on the domestic market.

 

(Xinhua News Agency June 15, 2006)