China's Guangxi region begins 400,000 Tonnes sugar purchase

SHANGHAI, Feb 16 - China's Guangxi, the country's sugar producing region, has begun to purchase 400,000 tonnes of sugar to shore up prices and help domestic sugar mills and farmers on Monday, a report from an industry website said.

Guangxi will purchase the sugar at 3,300 yuan a tonne, including tax, from Feb. 16 to March 31, said the website of Guangxi Sugar Wholesale Market, (www.gsmn.com), citing reports from a local TV station.

The report said the regional government would purchase refined white sugar and raw sugar produced during the 2008/2009 crushing season as regional reserves, but only mentioned one purchasing price.

China had said the central government would purchase 800,000 tonnes of domestically refined sugar for state reserves in early January.