The domestic sugar supply is adequate to meet demand from both industrial and household sectors this year, with total consumption reaching 1.27 million tonnes in the first half, according to the Office of the Cane and Sugar Board (OCSB).
While sugar cane production is declining in Thailand and other countries due to drought conditions, officials express confidence that the country will not experience a sugar shortage, stated Virit Viseshindh, secretary-general of OCSB.
“We believe there will be enough sugar for the domestic market in the 2023-24 crop year, and we expect sugar cane production to increase in the next crop year,” he mentioned.
For the 2023-24 crop year, sugar cane production is projected at 82.1 million tonnes, yielding 8.8 million tonnes of sugar, with a portion set for export.
Khon Kaen Sugar Industry Plc (KSL) anticipates an increase in sugar cane production to between 90 and 100 million tonnes in the 2024-25 crop year, with crops scheduled for processing at sugar mills from November this year to April 2025.
This should result in the production of 9 to 10 million tonnes of sugar, according to KSL president Chalush Chinthammit.
Thailand is home to 57 sugar factories, while domestic sugar prices, regulated by the Commerce Ministry, currently range from 27 to 28 baht per kilogram.
The drought’s impact on sugar cane plantations across various countries has led to a reduction in global supply, causing world market sugar prices to rise by approximately 30%.
In the first half of this year, global sugar prices reached 25-26 cents per pound, marking the highest level in 12 years, as reported by KSL.
Brazil, the largest sugar producer globally, has slowed its ethanol production from sugar cane since April to channel more crops into sugar production, aiming to capitalize on the elevated prices.
