Food and drink makers want sugar price cut

Food and beverage producers called for a reduction of Bt2.50 per kilogram in the domestic price of sugar after meeting Industry Minister Charnchai Chairungrueng yesterday.

Vilai Kiatsrichart, president of Thai Food Processors' Association, said their combined production costs had gone up by about Bt4 billion to Bt5 billion since former industry minister Suwit Khunkitti announced a sudden price rise of Bt5 per kilo last April.

"We are under great pressure. While our raw-material costs have surged, we cannot increase our product prices because they are controlled by the Commerce Ministry. If the government does not help us, we may need to lay off 10 to 20 per cent of our employees," she said.

About 300,000 people work in the processed-food and beverage industries.

Besides requiring the Industry Ministry to cut the price of sugar, manufacturers also called on the Office of the Sugar and Cane Board to revise some regulations, which should facilitate export-oriented companies to use the export quota for sugar.

The quota price is lower than that for domestic sugar, as it is not affected by last year's sharp hike of Bt5 per kilo.

Prachuab Tayakeepisut, a member of the Thai Beverage Industry Association, said the performance of most manufacturers in the sector had suffered last year as a result of higher production costs.

He said companies had made representations to both the Industry Ministry and Commerce Ministry over the past none months. However, their problems have not been tackled because the ministers have been changed four times in the past year.

Charnchai said he would submit their proposal to a meeting of the team of economic ministers as soon as possible.

"If the rising sugar price is hitting those manufacturers' businesses, the Office of the Sugar and Cane Board has the authority to reduce the price," he said.

The board has about 3 million sacks of sugar left under the export quota, which might be allocated to struggling manufacturers, he added.