Sucrose in solid form market in Papua New Guinea

Earlier Report Observations

Between 2018 and 2023, the sucrose market in Papua New Guinea showed considerable volatility, with total volume peaking at 83 410 t in 2021 before settling at 72 332 t in 2023. The market structure has been defined by the dominant position of Ramu Agri-Industries Ltd, shielded from import competition by a protective 70% tariff. This policy maintained high domestic prices and kept commercial sugar cane production concentrated in the Gusap–Dumpu plantation in Ramu Valley.

The market expansion in 2021 was primarily fueled by a jump in imports to 48 373 t. In the following years, the government's decision to retain the Goods and Services Tax (GST) on sugar exerted upward pressure on consumer prices. Simultaneously, rising domestic production costs led Ramu Agri-Industries to increase its prices, factors which contributed to the market contraction observed after the 2021 peak.

Authorities continued to promote import substitution through projects like the planned sugar production facility in Abau, Central Province. However, persistent challenges such as soil fertility decline in existing plantations, high transport and labor expenses, and limited industrial infrastructure constrained significant growth in local output, leaving the market dependent on imported sucrose to meet consumption needs.

Production sucrose in solid form in Papua New Guinea

In kind, 2017-2020, t

Top producers of sucrose in solid form, 2017-2020

World map of production of sucrose in solid form, 2017-2020

Papua New Guinea's production of solid sucrose declined for the second year in a row. In 2020, the country produced 29 588 tonnes, which was 2.9% lower than in 2019. Looking at the period from 2017 to 2020, overall production grew by 7%, averaging an annual increase of 2.3%. The highest production volume was recorded in 2018 at 30 492 tonnes, which also saw the largest year-on-year growth of 10.3%.

Annual dynamics of production in Papua New Guinea in kind, 2017-2020, t

Exports sucrose in solid form from Papua New Guinea

Exports in kind, t

In 2018, Papua New Guinea exported 41 tonnes of solid sucrose, representing a significant increase of 95.0% compared to the previous year.

Annual dynamics of product's exports from Papua New Guinea in kind, 2017-2020, t

From 2017 to 2020, Malaysia was overwhelmingly the primary destination for Papua New Guinea's solid sucrose exports, accounting for 96.6% of the total volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Papua New Guinea in kind, 2017-2020

Exports in value, K $ US

In 2018, Papua New Guinea's solid sucrose exports were valued at 58 thousand US dollars, marking a sharp rise of 58.9% from the year before.

Annual dynamics of product's exports from Papua New Guinea in value, 2017-2020, K $ US

Throughout the 2017–2020 period, the export value was highly concentrated, with Malaysia and Vanuatu together making up 100.0% of the total.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Papua New Guinea in value, 2017-2020

Imports sucrose in solid form to Papua New Guinea

Imports in kind, t

Papua New Guinea's imports of solid sucrose declined for the second consecutive year. In 2020, the country imported 40 088 tonnes, which was 3.7% lower than in 2019. Over the 2017–2020 period, imports increased by 31.2%, with an average annual growth rate of 9.5%. The peak import volume was recorded in 2018 at 40 088 tonnes, which also saw the largest year-on-year increase of 36.8%.

Annual dynamics of product's imports to Papua New Guinea in kind, 2017-2020, t

From 2017 to 2020, Thailand and Malaysia were the dominant sources for Papua New Guinea's solid sucrose imports, with other countries accounting for the remainder.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Papua New Guinea in kind, 2017-2020

Imports in value, K $ US

Papua New Guinea's solid sucrose imports increased for the third year in a row. In 2020, imports reached 20 352 thousand US dollars, showing a robust growth of 15.5% compared to the previous year. Over the 2017–2020 period, import value rose by 42%, averaging an annual increase of 12.4%.

Annual dynamics of product's imports to Papua New Guinea in value, 2017-2020, K $ US

Throughout 2017–2020, Thailand, Malaysia, and Australia were the leading sources for Papua New Guinea's solid sucrose imports in value terms. Thailand accounted for 66.4%, Malaysia for 11.4%, and Australia for 7.5%, together making up 85.2% of the total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Papua New Guinea in value, 2017-2020