Thai sugar industry bitter as exports and price fall

[snoop1130]

Thai sugar industry bitter as exports and price fall

By THE NATION

 

 

The Thai sugar industry is hit by the twin crises of falling exports and sliding price, according to industry experts. The most imminent threat to the industry is the falling price of sugar in the global market, which has currently dropped by 10 to 11 cent per pound, the lowest price in six years.

 

FO Licht, an agribusiness intelligence agency, reported on September 19 that the global sugar stocks in fiscal year 2018-2019 (October to September) were 78.19 million tonnes, while global sugar production was 181.48 million tonnes and global consumption 186.45 million tonnes.

 

The report predicted that the global sugar reserves would drop to 72.67 million tonnes at the end of 2019, or 38.97 per cent of global consumption.

 

The huge amount of global reserve has caused the price of sugar to drop continuously with no signs of recovery in sight.

 

The country whose practice has caused the most concern is India, which has more than 15 million tonnes of sugar in reserve, while the government has promoted the export of six million tonnes of sugar.

 

Some countries sees India’s move to increase sugar export as a factor behind the lower price of sugar.

 

Thailand’s sugar exports in the first eight months of 2018 dropped from 7.212 million to 6.067 million tonnes compared to the previous year. Major clients included Indonesia, Cambodia, Taiwan and Myanmar, who have all reduced their imports.

 

Piromsak Saisunee, director of Karpolpalit Namtarn Co Ltd, said that besides the falling global sugar price, another factor that was of concern to the Thai sugar industry was the appreciation of the baht. “If the baht grows stronger than Bt30.50 to the US dollar, the Thai sugar industry will lose most of its clients to Brazil, our biggest competitor,” he said. “Currently Brazil’s currency, the real, is weakening which is boosting their sugar exports considerably.”

 

Source: https://www.nationthailand.com/business/30376901

 

-- © Copyright The Nation Thailand 2019-09-30

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[trainman34014]

They still don't 'get it' with the Baht do they ?    Meanwhile' sugar prices in the Supermarkets have been the same for months, so no good deals for domestic consumers !

[worgeordie]

No problem,the Government will step in with support,

like they already do with most agricultural products.

regards Worgeordie

 

[Halfaboy]

But that would be a whole lot of money....

[Scot123]

These clowns are doing so much damage to Thailand. Even now without the awaited crash that everyone except the deluded see coming will take years to recover from. Contract will be getting replaced and not replaced. Not looking good but Hay at least the rich are laundering their money abroad. 

[spidermike007]

Get rid of sugar. Encourage the farmers to move on to more profitable crops that do not have a tremendous degradation factor on air quality. Sugar burning is a massive crisis that greatly affects this nation and is a large cause of the poor air quality. There are alternatives and more sugar is not needed. Exotic fruits, mushrooms, herbs, profitable vegetables, etc. 

 

We need to see some creativity from this feckless and hugely incompetent administration. 

 

The army needs to go back to their needless tasks and leave the people alone. Prayuth get out. Get out now! Resign. Admit your massive failure. 

[30la]

I hope this dirty industry that harms the environment, and produces a product that should be prohibited, goes bankrupt

[RichardColeman]

'Buy Local Sugar' drive coming right up

[hotchilli]

On 9/30/2019 at 5:44 PM, snoop1130 said:

which has currently dropped by 10 to 11 cent per pound, the lowest price in six years.

 

Same as my pension.... suck it up brothers...

[IAMHERE]

One solution would be to place a TAX on sugary drinks. Gotta look at more directions than up , you know.

[stropper]

suger in thailand and though out the world is stuffed, we lost 80k bart plus this year ,the price out here fell to 550bart per ton, from 1000bart the year before,  1200 the year before that, every body lost, the quality was the best that i had seen for years. Now  we all have changed mainly to mung , food infancer and the price seems to be staying constant and is profitable if above 1.6 bart per kilo, we have two new huge factories out here , so now with 3 factories it is looking good, very little sugar has been planted, we are keeping 10 rai  of quality cane for  replanting only. Rice is going to sky rocket as so much was lost under water around here, it has all ready gone through the roof where we buy paddy rice for the chooks , ducks and turkeys,  at si that, we grow 160 ,50kg bags a year but have just run out, all local reserves have been sold or used, but this years crop is looking sensational as i finally got them to use the new rotary plough  and the 6110s tractor in the paddies and hand planted instead of seed sowing, we are at the moment turning 20 rai back into rice as it is on the small river next to it and with pumps we should get two crops per year, the government does help  with rice planting, nothing what so ever for sugar,, so all you bar sitting pommie whingers get out and get some information before you open your uniformed know it all mouths, and thats farming, it is fun!

[stropper]

just a few replys to your uninfomed comments, firstly sugar cane is very rarely burned now, most mills have a sign refusing burnt cane, most farmers have learnt to plough back the stalk and leaves instead of burning, a few old timers still do,. Most sugar cane mills in thailand are owned by the japenese, very few are thai owned , so why should the government help them. And lastely nearly ever one out here has changed from suger this year and i doubt we will see any around here for many years, both mills out here are jap owed and they will struggle for cane this year as every one lost and will not be back till the price gets better

[Cadbury]

16 hours ago, snoop1130 said:

Thai sugar industry bitter as exports and price fall

Just wait until the higher sugar taxes kick in and there is a drop in domestic consumption and then listen to them scream..........subsidy, subsidy!

[farmerjo]

The sugar price has always had cycles from 400 to 1200 baht that i can remember.

Before everyone says how bad it is,it's has done wonders for the prosperity of the community and village farmers around here.

The burning can be avoided,it provides a lot of jobs in the area that other crops cannot sustain.

 

 

[Isaan sailor]

Maybe the ChiComs will buy sugar.  After all, Thailand and China best buddies now.

[Mavideol]

we have to wonder what else has to drop down in order for them to open their eyes (brains) ... exports down, tourism down, expats down, quite sometime didn't see anything going up besides prices at the supermarket

Thai growth outlook below potential, but no crisis yet - central bank governor

 

Edited October 1, 2019 by Mavideol

[GarryP]

2 hours ago, stropper said:

just a few replys to your uninfomed comments, firstly sugar cane is very rarely burned now, most mills have a sign refusing burnt cane, most farmers have learnt to plough back the stalk and leaves instead of burning, a few old timers still do,. Most sugar cane mills in thailand are owned by the japenese, very few are thai owned , so why should the government help them. And lastely nearly ever one out here has changed from suger this year and i doubt we will see any around here for many years, both mills out here are jap owed and they will struggle for cane this year as every one lost and will not be back till the price gets better

Seen loads of burning in Kalasin so some of the mills are certainly accepting burnt cane. 

 

Perhaps the biggest problem is corn. 

[Tayaout]

2 hours ago, stropper said:

And lastely nearly ever one out here has changed from suger this year and i doubt we will see any around here for many years, both mills out here are jap owed and they will struggle for cane this year as every one lost and will not be back till the price gets better

So basically it's time to plant sugar. Do the opposite of everyone and you will be fine... 

 

Personally I don't plant this <deleted>. It looks like a bee desert around here... Only sugar and cassava. The only flowers are from my multi species crop. 

Edited October 1, 2019 by Tayaout

[spidermike007]

4 hours ago, stropper said:

suger in thailand and though out the world is stuffed, we lost 80k bart plus this year ,the price out here fell to 550bart per ton, from 1000bart the year before,  1200 the year before that, every body lost, the quality was the best that i had seen for years. Now  we all have changed mainly to mung , food infancer and the price seems to be staying constant and is profitable if above 1.6 bart per kilo, we have two new huge factories out here , so now with 3 factories it is looking good, very little sugar has been planted, we are keeping 10 rai  of quality cane for  replanting only. Rice is going to sky rocket as so much was lost under water around here, it has all ready gone through the roof where we buy paddy rice for the chooks , ducks and turkeys,  at si that, we grow 160 ,50kg bags a year but have just run out, all local reserves have been sold or used, but this years crop is looking sensational as i finally got them to use the new rotary plough  and the 6110s tractor in the paddies and hand planted instead of seed sowing, we are at the moment turning 20 rai back into rice as it is on the small river next to it and with pumps we should get two crops per year, the government does help  with rice planting, nothing what so ever for sugar,, so all you bar sitting pommie whingers get out and get some information before you open your uniformed know it all mouths, and thats farming, it is fun!

Please change crops. Do it for your family. Do it for the nation There are good alternatives. As stated above. Please. Rid yourself of this horrendous crop. 

[spidermike007]

4 hours ago, stropper said:

just a few replys to your uninfomed comments, firstly sugar cane is very rarely burned now, most mills have a sign refusing burnt cane, most farmers have learnt to plough back the stalk and leaves instead of burning, a few old timers still do,. Most sugar cane mills in thailand are owned by the japenese, very few are thai owned , so why should the government help them. And lastely nearly ever one out here has changed from suger this year and i doubt we will see any around here for many years, both mills out here are jap owed and they will struggle for cane this year as every one lost and will not be back till the price gets better

Absolutely uninformed, and untrue. There is a massive amount of burning going on. I know of no sugar farmers who DO NOT BURN. I wish what you were saying was true. But there is no enforcement, and burning seems to be the easiest way for these guys. The result is horrendous during burning season. The hospitals are crammed full of people suffering from respiratory ailments and lung disease.

 

I also hope you are right about farmers switching to other, more progressive crops. Sugar is a disaster for everyone involved, except perhaps the mills, who might be the only one making money on it. 

[IAMHERE]

4 hours ago, Cadbury said:

Just wait until the higher sugar taxes kick in and there is a drop in domestic consumption and then listen to them scream..........subsidy, subsidy!

And the thought process will be to raise the tax higher so they can pay the subsidy.

 

[Burma Bill]

Great news - maybe less of those slow and cumbersome sugar cane carrying trucks cluttering our rural roads during the harvesting season!

Edited October 1, 2019 by Burma Bill
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