Millers angered by slow sugar distribution

Sugar millers are planning to take back the sugar they previously agreed to allocate to the Commerce Ministry to ease the tight supply of the commodity, blaming the ministry for delays in distribution.

The Thai Sugar Millers Corporation (TSMC), which comprises 47 local mills, is preparing to ask the Cane and Sugar Board (CSB) to consider giving back the sugar allocated to the Commerce Ministry so that it can distribute the sugar itself, said TSMC executive chairman Vibul Panitvong.

The Industry Ministry's Cane and Sugar Board on March 11 approved the Commerce Ministry's request for a special allocation of 100,000 tonnes of sugar to distribute through 11 traders to relieve the shortage and prevent a further spike in prices.

The approval came after retailers complained about their diminishing stocks and millers' reluctance to supply them.

A CSB source said that so far, 80,000 out of the 100,000 tonnes of sugar had been allocated to the Commerce Ministry, but only about 3,000 tonnes had been released to the market.

"In fact, we have seen very little progress in the distribution [of sugar]," said Mr Vibul.

Industry permanent secretary Witoon Simachokdee, also the CSB chairman, said the board would meet on May 24 to consider the allocation of 100,000 tonnes of sugar to the Commerce Ministry.

The CSB in March raised the quota for local consumption by 100,000 tonnes to 2.2 million tonnes, expecting that demand for domestic food and beverage production would rise in line with the recovering economy.

An increased quota would be allocated largely to the Commerce Ministry.

In Thailand, the sugar business operates under a quota system, with white-only quota A for local consumption; raw-only quota B to be exported by the quasi-government Thai Cane and Sugar Corp; and white-and-raw quota C to be exported by mills through traders.

source:bangkokpost