Thai Cabinet approves law saying sugar refineries should be at least 50km apart

[webfact]

Cabinet approves law saying sugar refineries should be at least 50km apart

BANGKOK, 21 April 2015, (NNT) - The Cabinet yesterday approved a regulatory amendment to shorten the required distance between sugar refineries from 80km to 50km.

Government Spokesperson Yongyuth Mayalarp said the relaxed regulation would help reduce transport costs for sugarcane growers.

The spokesperson elaborated that a new sugar refinery must prepare a sugarcane harvesting plan and in its first year, process no less than 50 percent of its seasonal capacity.

The amendment also requires a new factory to complete construction within five years of approval. Dr. Yongyuth said that operators who fail to do so must resubmit their request.

The spokesperson added that the Office of the Cane and Sugar Board is now tasked with approving the construction, relocation or expansion of sugar refineries. Previously, these matters required Cabinet approval.

-- NNT 2015-04-21

[Ricardo]

Is it not possible to have sugar-refineries even closer to one another, so that they are forced to compete for the sugar-cane, and bid the price up to the benefit of the farmer who grew the stuff ?

Or would that risk monopoly-profits from being enjoyed ?

[LuckyLew]

Great news

I am sure this great bill will make everyone in Thailand so so happy

Pretty sure there are more pressing issues at hand

[JAG]

One can only assume that somebody with a lot of influence wishes to build more refineries, to strengthen his monopoly.

[wgdanson]

Surely it should be that they are at MOST, 50 km apart, not AT LEAST.

[sead]

Now apply this to 7/11

Atleast 500m between them

[ALLSEEINGEYE]

How about ending this stupid law about no alcohol sales between 2 and 5 pm? If you go food shopping for dinner you then need to make another trip to get a bottle of wine for your meal. Utterly stupid.

[issanaus]

Good decision by the government - I am no sure that 50km is the right figure but it is an improvement.

There are potential advantages to farmers, environment, economy and road users in the regions.

Additional productive capacity should allow farmers more flexibility in cropping decisions, more easy entry or expansion of production and increased returns for some by being able to sell to the mills in their own name rather than having to rely on using other peoples quotas. Another advantage of the reduced distances is that it would make it more viable to harvest green cane rather than burning the cane reducing the sugar content in the process. If Thai farmers move away from burning cane then there will be less smog and green house gasses produced assisting the environment. Costs to farmers should be reduced by both traveling time being reduced and hopefully waiting times to tip at the mills being reduced.

Anyone who has spent time on the roads with cane 'truck' would be grateful for the reduced time on the roads by such transporters.

[somo]

Sounds like a typical Thai fudge that does little, perhaps by design. Reducing the distance from 80 to 50km means that a new refinery cannot be built between two existing refineries that are say 99km apart ie less than 100km. as it would be too close to one of them.

[rayfork]

How about ending this stupid law about no alcohol sales between 2 and 5 pm? If you go food shopping for dinner you then need to make another trip to get a bottle of wine for your meal. Utterly stupid.

Seems like it's the only law they can enforce!

[Thai at Heart]

They actually legislate this idiocy? What is the risk if someone wants to open a refinery next door to another? The more the merrier I would say.

[wabothai]

And, are the generals now in the sugar business? I thought they were in the army business. May be I am wrong.

[Usual Suspect]

So with all Thai rice-mill owners under the spotlight..the scrupulous cartel of millers think there's big bucks in the 'milling' of sugar cane also..I'm

not sure of the relevance of this 50km zoning, but am pretty damn sure the bill will be passed purely so the fat cats get more cream.

[Thai at Heart]

I mean honestly, who was this law intended to benefit in the first place? Farmers or millers.

What earthly reason does a sugar mill need protection for? Pure oligopoly behaviour.

[ableguy]

They actually legislate this idiocy? What is the risk if someone wants to open a refinery next door to another? The more the merrier I would say.

Depends which hi so owns the mill, life is cheap here the God is money.

[Ricardo]

And, are the generals now in the sugar business? I thought they were in the army business. May be I am wrong.

You are wrong, currently they're in the government racket, I hesitate to call it a business since that would imply sane management, which isn't a strength here.