Sugar industry assures adequacy of stocks

Thailand is unlikely to experience a sugar shortage this year since supply still exceeds demand, insists the Cane and Sugar Board.

Secretary-general Prasert Tapaneeyangkul emerged yesterday to confirm the adequacy of the domestic sugar supply amid growing concerns that a shortage was looming, similar to that of palm oil.

"By increasing the domestic sugar allocation, we assure the people that we have a significant amount of sugar, unlike in the case of palm. Thailand does not produce enough palm, but for sugar, our production outstrips the demand by several times," said Dr Prasert.

"It is impossible for a sugar shortage to occur. But if it does, it will most likely be caused by psychological reasons," he said, referring to those who are using the opportunity to spread false news in order to stockpile sugar for speculative purposes.

"Two days ago I examined the shelves at convenience stores and they were still full of sugar, and there were no signs that people were rushing to buy it. But if someone is stockpiling the commodity and alarming the people about an impending shortage, don't let them use us."

Mana Rittichaisamachan, president of Nakhon Sawan's association of sugarcane planters, said that Thailand's actual sugar consumption was 2.2 million to 2.3 million tonnes per year and this year's domestic allocation is 2.5 million tonnes, an increase from last year's 2.2 million tonnes.

"If you look at the figures, we'll definitely not see a shortage. But the low price of sugar relative to other countries might be an incentive to smuggle it out," he said.

"The government needs to either step up controls against smuggling or reconsider the price of sugar by floating it in a managed way".

Mr Mana also criticised the Industry Ministry's decision to increase the domestic allocation since it will promote smuggling.

Industry Minister Chaiwuti Bannawat on Tuesday said this year's domestic allocation would likely be increased from 2.5 million tonnes to between 2.7 million and 2.8 million tonnes due to increased production.

"Thais consume not more than 2.3 million tonnes of sugar per year so if we increase it to 2.8 million, it is as if we are encouraging our neighbours to buy cheap sugar," said Mr Mana.

The Commerce Ministry caps prices at 23.50 baht a kilogramme against 35-50 baht in Cambodia, Vietnam and China.

source: bangkokpost