2008-2009 Is the golden year for the sugar cane and sugar industry

Sugar prices are moving up on higher demand

Sugar cane price could rise to Bt1,000 per tonne in the 2008/2009 harvest season, which should guarantee the unchanged supply of cane from last year's level, said Prasert Tapaneeyangkul, secretary general of the Office of Cane and Sugar Board.

"This is the golden year for the sugar cane and sugar industry. From total cane production of 66.5 million tonnes in the harvest season, we can produce 7.1 million tonnes of sugar. But due to lower outputs globally, many countries have demanded higher sugar imports like India, Europe, Pakistan and China, which should boost the sugar prices," he said.

The cane output is below the target of 71.80 million tonnes.

Involving 190,000 farming families and over 1 million jobs, the sugar industry earns Bt80 billion a year, including export revenue. Last year, Thailand's sugar exports totalled Bt47 billion.

To promote the industry, the government has worked with farmers and 47 sugar mills in growing high-yield and high-sugar-content cane. Over Bt10 billion of loans has been allocated to farmers, while the government is considering the proposed Bt1 billion scheme for sugar cane-harvesting truck purchases.

"Sugar prices have risen despite economic slowdown, as many countries like India, China and Europe suffer from natural disasters which led to lower cane production. The primary cane price for the 2009/2010 harvest year should stay above Bt800 per tonne," said Thai Sugar Miller Ltd's chief executive officer Vibul Panitvong.

The previous harvest year's primary price was Bt850 per tonne.

He also believed that due to the high prices, farmers would grow more sugar canes in the next harvest season.

source:nationmultimedia