BEIJING—China's beleaguered sugar producers are hoping for a taste of victory Monday as Beijing prepares to deliver its verdict on sugar import duties and intensifies a crackdown on rampant smuggling along ancient trade routes.
China's Commerce Ministry will issue its first ruling on a months-long investigation into raw and refined sugar imports, having already proposed hefty tariffs in a draft ruling.
A steep hike in duties by the world's biggest sugar importer would be a serious blow for top producers Thailand and Brazil, amid concerns about waning global demand for the sweetener.
However, it would offer a much-needed reprieve to millions of small farmers and state-owned producers like Nanning Sugar Industry and Cofco Tunhe Co who argue cheap imports have caused billions of dollars of losses, cost jobs and forced output cuts.
"If results are what the market has rumored, imported sugar will lose its competitiveness while domestic sugar will get a boost," said Wang Weidong, analyst based in Nanning, Guangxi province, at Huatai Futures.
In a further sign that Beijing is trying to revive the broader industry, it has tightened checks along China's porous southern border with Myanmar to try to stamp out the flow of illicit sugar, a source at a major global trader, a sales manager at a top southern producer and three experts said.
Source: money.usnews.com