Thailand tightens domestic sugar prices, controls exports

The Nation newspaper reported that the Thai cabinet on October 31 approved the proposal of the Ministry of Commerce to add sugar to the list of goods subject to price control. The decision was announced by Thai Prime Minister Srettha Thavisin after a cabinet meeting on the same day, effective from November 1.

Under the decision, any changes in domestic sugar prices as well as exports per ton of sugar will need to be approved by the Central Committee on Prices of Goods and Services under the Ministry of Commerce of Thailand.

The Central Committee for the Price of Goods and Services has previously agreed to regulate sugar prices to reduce the impact on consumers. The move comes after the Thai Sugar Council announced last week that it would increase the factory price of sugar by 4 baht (2,700 VND) per kilogram. The announcement immediately caused a shortage of sugar in supermarkets and grocery stores in Thailand as people rushed to buy sugar while many business owners stocked up in anticipation of a price increase.

The agencies announced that the ex-factory prices of granulated sugar and refined sugar will be kept at 19 and 20 baht per kilogram. The retail prices will be 24 and 25 baht each.

Commerce Minister Phumtham Wechayachai said the government's decision would not affect sugarcane farmers as they would continue to receive government subsidies.

Thailand is currently the world's second-largest sugar exporter. In 2023, the country is expected to export 8 million tons of finished sugar. However, sugar exports in 2024 may fall to 6 million tons amid forecasts that drought caused by El-Nino could reduce sugarcane production in Thailand by about 20%.

Before Thailand, India announced plans to ban sugar exports for the season starting in October, the first such ban in seven years. The Indian government has extended the ban on sugar exports beyond October until further notice, PTI reported on October 18. The decision was taken to meet domestic demand during the festive season. Sugar is a controlled commodity in India and producers must seek government approval to sell it abroad.

Minh Hoa (reported by Thanh Nien, VOV)

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