Guangxi Zhuang Autonomous Region, which controls China's largest sugar-producing areas, has decided to procure 400,000 tons of sugar at the price of RMB 3,300 per ton from Feb. 16 to the end of March.

A representative of the local Economic Commission says the move aims to stabilize sugar prices in the domestic market. In fact, the move is also consistent with the 800,000-ton sugar procurement plan made by the central government.

The local government appointed a local company to be in charge of the procurement and will only allow enterprises registered in Guangxi Zhuang Autonomous Region to store the sugar.

According to the statistical record, each year from March to May there is a slump in the domestic demand for sugar.