China may release sugar from its reserves to help cap rising domestic prices for refined sugar, which are nearing a record high due to a shortage of raw.
Sugar plants in major producing areas cannot secure enough cane, and have delayed crushing for about half a month. Sugar plants in the south should have started crushing from November, industry officials said on Tuesday.
The amount or timing of any reserve sale had yet to be put in writing, but traders and officials said high world prices were discouraging imports, making a release more likely. Prices for refined sugar rose 21 percent this week from last month to 4,300-4,450 yuan ($533-$551) per tonne.
They were now just 10 percent below record levels of 5,000 yuan in 2000, when frost damaged cane in Guangxi.
The market had already hit a record high for the beginning of the crushing season.