Sugar price to be floated in October

[webfact]

Sugar price to be floated in October

 

 

BANGKOK, 27 February 2017 (NNT) - The Ministry of Commerce has confirmed 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 this year. 

Deputy Director-General of the Internal Trade Department Somsak Kiatchailak said the highest price at which sugar is allowed to be sold is 23.50 baht. However, the ministry will no longer enforce sugar price ceiling regulations if sugar price is floated in October, said the official. 

Five baht/kilo from the sale of sugar will be given to the Cane and Sugar Fund to help cane farmers by 160 baht/ton. If sugar price is floated, there is no need to send money to the fund. 

The ministry may ask the central committee on goods and services to revoke the sugar price ceiling so that the ministry can closely monitor the sugar price situation in the country, said the deputy director-general. 

If sugar traders refuse to adjust retail price of sugar in line with the global market, the ministry will invite them to discuss the price adjustment that will not affect consumers.

 

-- nnt 2017-02-27

[whatawonderfulday]

This will turn into another scam just like the rice subsidy.  Except the Generals men will benefit.

[PatOngo]

Sweet!

[Sydebolle]

So am I getting this right?

The governmental "Cane and Sugar Fund" gets THB 5 per kilogramme from the sale and subsequently subsidizes THB 0.16 per kilogramme to the farmer?

Just asking .......... 

[worgeordie]

The price will most likely rise ,the middle men will be the gainers

as normal,BUT if Thailand follows the World price,they have to

realize prices can drop as well,then the farmers will be pressuring

the Government ,to purchase excess production at above the World

price.

 

regards worgeordie

[Muhendis]

A lot of the sugar farmers are tied into three year (supply only) contracts with the middle men. These guys will have no way to get out of sugar cane growing if the price/tonne to them falls.

[Srikcir]

5 hours ago, webfact said:

However, the ministry will no longer enforce sugar price ceiling regulations if sugar price is floated in October,

DPM 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." (2017-02-22)

http://englishnews.thaipbs.or.th/sugar-price-allowed-float-freely-accordance-world-market-price/

Another government road trip at taxpayer expense.

Certainly can't email and discuss report via internet/video conferencing or by speaker phone. That would be too cost effective with no opportunity for personal enjoyments or paid holiday.

 

[Brer Fox]

What happens to the sugar industry if they put in place a "sugar tax" on drinks and such like? Will that impact on production and domestic sales? As per usual, wait and find out the hard way and then try and unravel any bad decisions.

[Gonefortea]

6 hours ago, Muhendis said:

A lot of the sugar farmers are tied into three year (supply only) contracts with the middle men. These guys will have no way to get out of sugar cane growing if the price/tonne to them falls.

Yes I agree but now most sugar farmers as we do only sell the sugar to the sugar companies middle men on a yearly basis. If the price from those drops dramatically as it did this year. ( last year for whole crop we got 800000

This year they quoted 650000. We refused cut the sugar our self's and sold it to a local outlet we was getting 1000 to 1250bht a ton.

Taking out the cost of hiring a truck every 4 days to transport the sugar we ended up with just over 725000. Unfortunately middle men know most farmers will accept what they offer.