Bangkok, Sugar producers have asked the government to reconsider the decision to remove sugar as a controlled product, affecting overall exports. There will be a problem of illegal exports. While farmers will not benefit amid rising production costs
Mr. Chalat Chinthammit, Chief Executive Officer and the President Khon Kaen Sugar Industry Public Company Limited (KSL) Khon Kaen Sugar Industry Public Company Limited (KSL) stated that the base price of sugar in the world market has continuously increased. from the factors of higher production costs and labor costs As well as the amount of demand increasing according to the world population. coupled with the weakening of the baht The government announced price control of sugar products. and pulling back from free trade If it is an export-controlled product of more than 1 ton, permission must be notified. It will affect the overall export market. This is because it brings in large buyers from abroad who normally enter into futures contracts. There is uncertainty that once the contract is made, the government policy will change. Are there any other rules? In the future, buyers will negotiate the price down. To prevent risks that will occur
Therefore, it is the duty of the entrepreneur to request a meeting with the relevant government agency. To clarify and understand the problems and impacts that have occurred. Because the price of sugar is not like other products. If the price is adjusted, the operator will benefit on one side. But sugar is controlled by cane and sugar laws. Adjusting the price of sugar will benefit sugarcane farmers. According to the benefit sharing ratio, farmers get 70% and factories get 30%. In addition, the retail price in the country is 24-25 baht/kg, cheaper than abroad. Especially in neighboring countries where the price is more than 30 baht/kg, it will cause Thai sugar to be illegally exported. and farmers did not receive any additional benefits. Therefore, we ask the government sector to review appropriate measures.
In this regard, the sugar factory group specifies the “price of sugar” in each country. There are many differences. For example, Hong Kong is over 100 baht/kg, ranked 1st, Norway is over 90 baht/kg, ranked 2nd highest, South Korea is over 60 baht/kg, ranked 14th, Vietnam is over 45 baht/kg, ranked 45th, Malaysia exceeds 37 baht/kilogram, ranked 68th, Brazil over 32 baht/kilogram, ranked 72nd, is information from globalproductprices.com September 2023
For the price of sugar in Thailand It has been calculated at a price of 21 baht/kilogram, ranking 80th as the runner-up from a survey of 81 countries. In this matter, it is important because it has been proposed to adjust the sugar price to 4 baht per kilogram. to reflect the true costs Because over the past 3 years, sugarcane management costs, such as fertilizer prices, have increased significantly. The cost of agricultural labor has increased significantly. Agricultural workers are still hard to find because other jobs earn more, for example.
Thailand is the world’s number 2 sugar exporter, but sugarcane farmers have a difficult life. The increase in the price of sugar by 4 baht/kilogram, announced by the Office of the Cane and Sugar Board on October 27, 2023, has been scrapped. was pressed even more There are also measures that are somewhat counter-intuitive and unexpected. There is a Royal Gazette specifying that sugar be added as a controlled product from the Ministry of Commerce on October 31, 2023.
Adding the list of sugar as a controlled product Determining the selling price of sugar is a big issue. that is important It had previously been resolved to reduce risks through negotiations with the belligerent countries. Because this intervention is inconsistent with the agreement made with the World Trade Organization WTO, it may be a problem that will lead to products from Thailand being penalized. There was a dispute with Brazil and India that had previously filed a lawsuit.
If analyzed according to the facts Those who benefit from not adjusting the price of sugar to 4 baht/kilogram this time are complicated. There is a large amount of money lost, such as a food and beverage business group that uses sugar as a raw material. Mafia group who smuggle sugar out of Thailand along the border. Groups of government officials seek benefits, etc., because the price difference between foreign sugar prices is much higher than domestic prices.
Announcement of sugar as a controlled product Suppressing the price of sugar in Thailand If looking at the foreground and the stated intention It’s like wanting to help take care of the people so that they don’t get affected. But the reality Historical statistics that have surveyed Thai people’s sugar consumption will not exceed 12 kilograms per person per year. Increasing the price of sugar by 4 baht per kilogram It will affect expenses by 48 baht per person per year. About 4 baht per month, which has almost no effect.
Source: Thai News Agency