Agricultural Policy of BHS

To develop sustainable material area, improve the competitiveness of sugar products in the country toward the target "Improving quality –Reducing price" and support farmers to stabilize their life by growing sugar cane, BHS have actively developed and issued many various policies to support in recent years including:

1. Investment policy on material sugar cane

• Apply the quota of sugar cane seed, care for material cane, support in costs and provide mechanization service, investment agricultural materials, policy of procuring sugar cane, and underwriting contract of sugar cane at competitive prices depending on the time of market.
• Encourage and facilitate farmers in diversify the fertilizers to suit each sugarcane varieties and soil conditions, and at the same time requestinvested households to receive adequate quantities and types of fertilizer according to the quota. In the process of cultivation, depending on actual the situation and conditions (mode of cultivation, sugar cane ...), the Company has also provided additional fertilizers (not exceeding 20% of the fertilizer quota and ensure repayment ability).
• Timely supply plant protection products to ensure safety and quality at the request of the investment receiver on the basis of technical consultants of the Company in order to ensure the efficiency.

2. Advance payment investment policy

The total investment value is upto 22 million / ha, including cash and agricultural supplies, with signing the underwriting agreements of minimum output before each crop.

3. The preferential policies and the policy encouraging the receipt of investment

• Encourage the receipt of investment by reducing interest rates, in the form of direct investment and direct investment of sugar cane and sale of agricultural materials with deferred-interest or advance investment (as above).
• Apply flexibly remuneration policy by classification of customer groups to maximize support efficiency, reduce interest rate of the investment as prescribed for each type of investment.
• Encourage the planting of young sugarcane to stabilize material area, non-refundable cash support with specific conditions depending on the actual situation.
• Encourage investment to expand the area near the factory and surrounding area, in an area with a radius <40km; encourage the conversion of plant and non-refundable investment or reducing interest rate.

4. Other policies

• Policy of classifying customers to enhance the effectiveness of investment and the ability to recover the debt.
• Reward policy of cutting cane close to the stump, the reward for workers having sugar cane with the least impurities.
• Policy to support sugarcane area affected by drought and by insect and pests (depending on the actual crop situation)..
• Policy to support intercropping high yield crops with sugarcane to increase productivity.