Sugar price to drop by 2-3 baht/kg when price is floated as of Dec 1

By Thai PBS

 

 

The retail price of white sugar is expected to average 20.50-21 baht per kilogramme – down 2-3 baht per kg from the current price – after the floating of sugar price as of December 1.

 

The floating of sugar price was endorsed by the Sugarcane and Sugar Committee at its meeting on October 31. The average retail price of white sugar will be based on average monthly price of Number 5 white sugar in London market plus the Thai premium price and this will lower the average white sugar domestic price by 2-3 baht per kg.

 

As it stands today, for every kilogramme of sugar from sugar mills, five baht will go to the Sugarcane and Sugar Fund. This mandatory contribution to the fund will be lifted once sugar price is floated. Based on London market price, the ex-factory price of sugar will range between 13.50-14.50 baht per kg.

 

Full story: http://englishnews.thaipbs.or.th/sugar-price-drop-2-3-bahtkg-price-floated-dec-1/

 

-- © Copyright Thai PBS 2017-11-07

More sugar please  !

Prayut had his rubber buffer stock and granary-pledging (aka rice mortgage) schemes that paid farmers higher than market prices.

 

Meanwhile Prayut urged in March 2015 that rice farmers and rubber planters to switch to sugarcane and other crops while waiting for prices of those two important products to pick up.

 

In February 2017 the Ministry of Commerce decided that it will not remove sugar from the list of controlled products even if the domestic sugar price is floated in line with the global price in October 2017. The Office of the Cane and Sugar Board in May 2017 let sugar prices float in December 2017 whereas sugar prices in the global market remain relatively stable.

 

The move was made after Brazil had threatened to file a lawsuit against Thailand at World Trade Organization that Thailand’s sugar subsidy program is crashing the global market. 

 

Bottom line - the Prayut government's erratic economic policies create unanticipated market adjustments both domestic and internationally. In whole the nation's reputation for effective agricultural management suffers.



 

 

The lower the price of any commodity usually ensures increased demand. Surely the military economic whizzes will see the need to increase sugar taxes even further to reduce sugar demand.

That in turn should surely disappoint those fat ass plebs who slurp up those big fat sugary milk drink while wandering around malls.