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Sugar price to be allowed to float freely in accordance with world market price

The Sugarcane and Sugar Committee has agreed in principle to adjust sugar price structure which will lead to the floating of domestic sugar price to be in line with world market price, industry permanent secretary Somchai Harnhirun disclosed Tuesday after the committee's meeting.

Also, he said the committee agreed to scrap the sugar quota system under which sugar produced locally is allocated into three lots: the first lot or Quota A for domestic consumption; the second lot or Quota B for exports through the Thai Sugarcane and Sugar Company; and the third lot or Quota C for exports by private exporters.

The new arrangement regarding sugar trading will come into force in the next production season or in October this year.

Mr Somchai said Thai representatives would travel to Brazil during March 6-8 report to Brazil about the sugar price restructuring and the planned floating of sugar price to ensure that the government will not subsidize sugar price.

As for retail price of sugar for local consumption, the Commerce Ministry will be in charge of overseeing the price to make sure that traders will not take advantage on the consumers.

Mr Somchai said that there is an appropriate time to float sugar price as domestic price is almost on par with world market price. Also, he added that if domestic price is too high, sugar imports will be allowed.

Source: Thai Public Broadcasting Service (Thai PBS)