Economic security

Smuggling crackdown stoking sales from China’s sugar reserves

China may sell sugar from its state reserves as a crackdown on smuggling limits supply in the world’s second-biggest consumer, according to an industry group.

Between 300,000 and 500,000 tonnes could be released as early as October due to expectations of tight domestic supply, Liu Hande, vice chairman at the China Sugar Association, said in a telephone interview on Tuesday.

As much as 2 million tonnes of sugar could be offered from reserves in the 2016-17 season starting next month, he said. Stockpiles are currently about 7 million tonnes, according to Liu.