Thailand : Sugar prices to rise in May amid soaring costs
Thailand will keep sugar retail prices stable in April but plans a hike in May due to rising production, energy, and packaging costs. While industrial prices remain unchanged to control inflation, the adjustment aims to sustain industry stability amid mounting cost pressures across the supply chain.
The Thai Sugar Millers Corporation (TSMC) will keep sugar retail prices unchanged throughout April, but plans to raise prices in May.
Somchai Harnhiran, chairman of TSMC, said the global manufacturing sector is currently facing rising costs, particularly in energy and petrochemicals, which are affecting various industries, including Thailand’s sugar sector.
Rapid increases in plastic pellet prices have raised packaging costs, resulting in about a 40% increase in the prices of bags and sacks used for sugar packaging.
These are all hidden costs that have risen across every stage of production and distribution, he said.
Despite sugar mill operators having tried to manage costs — such as securing forward contracts for raw materials and controlling other expenses — they are currently unable to avoid cost pressures, as other suppliers in the supply chain have gradually raised prices in response to higher costs.
He said sugar producers will keep retail prices unchanged until the end of April to help ease living costs for consumers.
Mr Somchai added that the sugar industry must adjust the price structure to better reflect the current situation to maintain a balance across production, liquidity management, and supply chain continuity.
“In May, we have to adjust sugar retail prices to ensure long-term stability of the industry, enabling all stakeholders including consumers, businesses and farmers to navigate this period,” he said.
Thailand produces 11.8 million tonnes of sugar annually, with domestic consumption around 2.35 million tonnes. Of this, 450,000 tonnes are for direct household consumption or retail sales, while the remainder is used by industrial sectors such as food, beverages, and pharmaceuticals.
He said that in this price restructuring, the industry has carefully assessed the impacts from all perspectives and decided to increase only the retail price.
Meanwhile, prices for industrial buyers will remain unchanged for now to prevent ripple effects on other consumer goods prices and help maintain overall economic stability.
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Source : Bangkok Post
