Thailand is the world’s largest sugar exporter after Brazil, and the industry has traditionally relied on exports for the bulk of its revenue.
However, in 2024, Thai sugar exports could face delays after the government introduced new measures to protect domestic supply and prevent smuggling.
In November, the Thai authorities classified sugar as a controlled good, requiring government approval for exports of over 1 ton, a measure some traders said could slow down deliveries.
A spokesperson for Khonburi Sugar said, “The premium of Thai sugar is that buyers get quality products on time.” With the new ruling, it will reduce the premium and impact confidence of overseas buyers.
This year, Thailand’s sugar output has been hit by drought and is expected to produce 8 million tons of which 2.5 million will be consumed domestically and 5.5 million tons exported. In 2022, the country exported 7.69 million tons of sugar.
The Thai government reversed a domestic price hike of 20% days after it was approved, trying to balance the interest of sugar cane farmers who have been also been hit by higher costs, but have not been able to increase local prices.
Cane and Sugar Board Deputy Secretary-General Virit Viseshsindh said, “Prices must be amended back to Bt 19 (US$0.54) and Bt 20 (US$0.57) per kg for white sugar and refined white sugar respectively.”
According to the Thai Sugar Millers Corp Director-General, Rangsit Hiangrat, “The measures (so far) have reduced the income of sugar cane farmers and affect the whole industry – if prices are not good then who will grow sugarcane ?”
The Thai government however said that it will introduce measures to support sugar cane farmers.
