Sugar production ample despite effects of drought : Thailand
Thailand’s domestic sugar supply is sufficient to meet demand, with 1.27 million tonnes consumed in the first half of the year, according to the Office of the Cane and Sugar Board (OCSB). Despite global drought impacting sugar cane output, OCSB is confident of ample domestic supply for the 2023-24 crop year. Sugar production is expected to rise in the 2024-25 crop year, reaching 9-10 million tonnes.
Domestic sugar supply was sufficient to serve demand in the industrial and household sectors this year, with total consumption tallying 1.27 million tonnes in the first half, says the Office of the Cane and Sugar Board (OCSB).
Sugar cane output is declining in Thailand and other countries because of drought, but officials are confident the country will not face a sugar shortage, said Virit Viseshindh, secretary-general of the OCSB.
“We believe there will be sufficient sugar for the domestic market in the 2023-24 crop year, with the amount of sugar cane expected to increase in the next crop year,” he said.
In the 2023-24 crop year, sugar cane output tallied 82.1 million tonnes, resulting in the production of 8.8 million tonnes of sugar, part of which will be exported.
Khon Kaen Sugar Industry Plc (KSL) expects sugar cane output to increase to 90-100 million tonnes in the 2024-25 crop year.
The crops are scheduled to be delivered for crushing at sugar mills between November this year and April 2025.
This should result in the production of 9-10 million tonnes of sugar, said Chalush Chinthammit, president of KSL.
There are 57 sugar factories in Thailand.
Domestic sugar prices are controlled by the Commerce Ministry, currently ranging from 27-28 baht per kilogramme.
The impact of drought on sugar cane plantations in many countries has reduced global supply, driving up sugar prices on the world market by around 30%.
During the first half of this year, global sugar prices were 25-26 cents per pound, which was the highest level in 12 years, according to KSL.
Brazil, the world’s largest sugar producer, slowed production of ethanol from sugar cane since April to use the crops to produce more sugar, aiming to benefit from the higher prices.
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Source Link : https://www.bangkokpost.com/business/general/2859716/sugar-production-ample-despite-effects-of-drought
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