Thai sugar sees Indonesian opportunity
Thai raw sugar exporters could see higher demand from Indonesia in early 2027 if domestic refining shortages emerge. Indonesia imported around $715 million worth of Thai sugar in 2025, but potential orders depend on Jakarta’s 2027 import quotas and ministerial approvals amid concerns over declining refined sugar stocks.
ANN/THE NATION – Thai raw sugar exporters could experience a surge in demand from Indonesia in early 2027 if Southeast Asia’s largest economy encounters supply shortfalls in its domestic refining sector, according to Thailand’s Office of International Trade Promotion in Jakarta.
However, any commercial uplift remains contingent on Indonesian import quotas and ministerial approvals.
The trade office, operating under Thailand’s Department of International Trade Promotion (DITP), identified potential export prospects despite Jakarta’s ongoing drive towards domestic self-sufficiency. Indonesian refiners require stable feedstock flows, and local agricultural yields continue to lag industrial demand.
In 2025, Indonesia imported roughly USD715 million worth of Thai sugar, representing over 27 per cent of Thailand’s overall sugar export receipts, outpacing secondary destinations including Cambodia, South Korea, and the Philippines. Thailand retained its standing as the world’s second-largest sugar supplier behind Brazil that year, dispatching 5.5 million tonnes valued in excess of USD2.6 billion.
The Indonesian Refined Sugar Association (AGRI) has sounded alarms that stockpiles of refined crystal sugar (GKR) could dwindle early next year, threatening downstream operations across food, beverage, and pharmaceutical manufacturing. AGRI Chairman Supriadi urged Jakarta to expedite 2027 raw crystal sugar (GKM) quotas so facilities avoid production halts.
Official figures indicate authorities granted 3.06 million tonnes of raw sugar import allowances to refiners for 2026. By late September, 945,417 tonnes remained unutilised, with refined reserves standing at 134,072 tonnes. AGRI cautions that stocks could plummet or exhaust during the final two months of 2026 based on consumption trends, triggering early-year bottlenecks.
Trade rules under Ministry of Trade Regulation number 18/2025, alongside its subsequent revision, allow industrial imports under specified regulatory oversight. While newer import bans took effect under Permendag 47/2025, exceptions persist for industrial processing into refined sugar. Therefore, trade flows have not been entirely severed, although refiners’ requirements do not automatically guarantee quota approvals.
Given procurement and shipping logistics require one to two months, administrative delays could trigger severe inventory stress. Thai suppliers face reciprocal risks: reduced import allocations by Jakarta could dampen Thai domestic market prices. Thai commercial officials advise exporters to monitor Indonesia’s forthcoming commodity balance assessments closely, coordinate with regional buyers, and prepare flexible supply logistics to capture early-2027 replenishment orders should quota releases proceed.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Borneo Bulletin
