Sugar producers are urging the government to review its decision to add sugar to the list of controlled goods. This move has raised concerns about potential smuggling of sugar out of the country and is not seen as beneficial for farmers, given the rising production costs.
Chalat Chinthammit, CEO and President of Khon Kaen Sugar Industry Pcl. (KSL), pointed out that global sugar prices have been continuously increasing due to factors such as production costs and higher labor expenses.
Additionally, the increasing global population and a weaker Thai Baht have contributed to this trend. The government’s decision to control exports of sugar will now require exporters to obtain permission for sugar exports exceeding one ton.
This could negatively impact the overall export market, as it may make international buyers, who usually enter into advance purchase agreements, uncertain about whether government policies, regulations, or guidelines will change after entering into contracts.
Hence, it is the responsibility of business owners to meet with relevant government agencies to clarify the issues and the resulting impact. Adjusting the sugar price will benefit sugarcane farmers according to a 70/30 profit-sharing ratio between farmers and factories.
Furthermore, the retail price of sugar in Thailand is around 24-25 baht per kilogram, which is lower than prices in other countries, especially neighboring ones where it can exceed 30 baht per kilogram.
This situation may lead to illegal sugar exports, ultimately causing no significant benefit to farmers. Therefore, it is imperative for the government to reconsider its policies carefully. (TNA)
