SUGAR INDUSTRY
'No need for reserve measure'
Manufacturers want to have more for exports amid fixed local market
Thai sugar manufacturers have urged the Commerce Ministry to end the government measure that forces them to maintain reserves at two million tonnes in order to facilitate trading in the Kingdom. "Production is increasing while local consumption remains unchanged, so Thailand will not face a sugar shortage any more," said Vibul Panitvong, president of the Thai Sugar Miller Corporation. Cancellation of the measure would allow manufacturers to export more sugar instead of maintaining stock. Last year, there was a shortage when some manufacturers smuggled out sugar to neighbouring countries to take advantage of higher export prices. "The government's measure should only be used in an emergency. When sugar trading has returned to normal, the government should abolish such market controls," Vibul said. Vibul said as there won't be a deficiency this year, the government should allow manufacturers to trade sugar freely. Production is forecast to increase by more than 20 per cent thanks to a higher yield of sugar cane. Thailand is the world's third-largest sugar exporter after Brazil and Australia. Total production in the world market is estimated to reach 156 million tonnes this year, up from 150 million tonnes last year. Domestic and international prices should not change much from last year - Bt18.50 per kilogram in the local market and Bt16 to Bt28 in the international market. Thailand's sugar production has been divided into three types of quotas: Gor (A) for domestic consumption, Khor (B) for exports of raw sugar by the Cane and Sugar Corporation, and Kor (C) for exports of all kinds of sugar by millers. Millers urged the government to revise its allocations in all three quotas in order to increase export value. They called for more flexible allocation under quota Kor (C). They added that the substantial increase in production this year will prevent shortage of supply. The country's annual sugar cane production should reach 6.3 million tonnes this year, or 63 million sacks of 100 kilograms each.
Petchanet Pratruangkrai The Nation
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