Ethanol manufacturers are calling for the government to increase ethanol reserves to stabilise production costs, which have risen in line with sugar prices and thus affected oil retailers.
"We've already proposed this solution to the government, but they don't seem very interested. They prefer we store ethanol ourselves instead of crops, but that requires an investment in tanks, which in turn risks evaporation and explosion," said Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee.
He said it was easier to store molasses, the main raw material in ethanol production.
Thailand's promotion of gasohol will not be successful unless the government solves fluctuations in the price of ethanol, Sirivuthi said. The Energy Ministry fixed the price at Bt20.21 a litre this month, but that will probably rise to Bt25 or Bt26 in the fourth quarter, due mainly to an increase in the price of molasses.
Oil retailers who mix 10-per-cent ethanol into gasohol products complain the high prices are preventing them from lowering their retail oil rates when global crude drops.
"Thailand's ethanol price changes too rapidly, because the government announces the reference price each month based on the average molasses price over the previous three months, which is not up to date with present conditions. Instead, it should set the price on a quarterly basis," he said.
He said molassas was now going for US$140 (Bt4,700) per tonne, but the Office of the Cane and Sugar Cane Board has announced a price of $110.
Molasses is expected to be more costly next year from reduced supply, and ethanol producers may not be able to handle the pressure of high costs and low selling price, he added.
So far, 45 ethanol plants have won production licences, but only 18 have started operations, with combined daily production capacity of 2.775 million litres. By the end of next year, five more plants are expected to operate, which will boost the country's ethanol supply to 5.695 million litres a day.
However, ethanol consumption is forecast to increase from 1.56 million litres a day now to 2.21 million litres next year, due to the government's promotion of alternative energy.
The price of molasses will move in line with sugar, which is expected to rise in the next couple of years because of higher imports by India and Indonesia, which have suffered drought, said Chalush Chinthammit, assistant vice president for business development and production at the KSL Group.
Next March and April, raw sugar could exceed 20 cents a pound, due to speculation by hedging funds, he said.
Thanks to higher prices in the 2009-10 harvest season, about 72 million tonnes of sugar cane is expected, up from 66.46 million tonnes in the previous season. The primary price of sugar cane will be Bt950 a tonne, but future increases will push sugar cane to about Bt1.1 billion per tonne.
"Oil retailers complain the high prices are preventing them from lowering their retail oil rates when global crude drops."
Friday, September 25, 2009
El Nino brings sweet deals to cane growers
Local cane farmers and the sugar industry are expected to benefit from high global sugar demand and prices over the next 2-3 years, according Sirivuthi Siamphakdee, vice-chairman of the Thai Sugar Millers Corporation.
Climate change as a result of the El Nin~ o effect will likely continue to suppress global sugar production in the coming years.
Global sugar production is growing yearly but at a slower pace than demand, as the climate change have an impact on the yields of the world's large sugar producers.
"Since weather is an uncontrollable factor, finding solutions to this problem may take two or three years so sugar prices should be high for a while," Mr Sirivuthi said.
As well, production costs are likely to be steady or to increase because crude prices are projected to rise further in line with the recovering global economy.
In addition, Mr Sirivuthi said global sugar demand was not the sole dominant factor in determining its price.The product has in recent years become an appealing commodity for speculation.
"White refined sugar is trading in the global market at about $580 per tonne at present, with a trend to rise to $600 sometime soon. So the overall outlook of the industry's income from exports will still be bright over the next few years," he said.
At this rate, exported sugar remains relatively more expensive than domestic sugar and does not provide a persuasive margin for traders to smuggle the domestic output for sale to overseas consumers.
Chalush Chinthammit, assistant vice-president of KSL Group Plc, pointed out that local authorities should find measures to block illegal attempts to export local sugar only when the export price surges above $600 per tonne.
"Next month, related industry bodies will discuss domestic sugar allocation for the following harvesting year, which should be higher than this year's allotted quotas due to the yearly increase in domestic consumption," Mr Chalush said.
"So even if the export price is higher,ensuring sufficiency of domestic consumption is the first priority."
So far, millers and farmers have sold 72% of the export quota in the 2009-10 harvesting year at an average price of 18 cents per kilogramme.
The earlier-than-usual selling agreements are attributed mainly to the attractive price.
Thanks to these factors, local cane farmers can expect to receive more than 1,000 baht per tonne for their cane, compared to 830 baht in the 2008-09 harvesting season.
The crops with higher CCS or sweetness yield should fetch even more per tonne, an incentive for cane farmers to work harder to increase their yields and expand cultivation land.
Mr Sirivuthi, also president of the Thai Ethanol Manufacturers Association, also discussed the ethanol price outlook, saying that the price of molasses had risen lately due to seasonal tight supply, which should improve when the cane-crushing season starts in November.
He still insists the molasses price increase has nothing to do with expensive sugar prices.
"One way to solve this is for petrol operators to increase their ethanol stocks. The Energy Ministry has introduced this initiative, as well as regulations to stabilise the ethanol price,"said Mr Sirivuthi.
Climate change as a result of the El Nin~ o effect will likely continue to suppress global sugar production in the coming years.
Global sugar production is growing yearly but at a slower pace than demand, as the climate change have an impact on the yields of the world's large sugar producers.
"Since weather is an uncontrollable factor, finding solutions to this problem may take two or three years so sugar prices should be high for a while," Mr Sirivuthi said.
As well, production costs are likely to be steady or to increase because crude prices are projected to rise further in line with the recovering global economy.
In addition, Mr Sirivuthi said global sugar demand was not the sole dominant factor in determining its price.The product has in recent years become an appealing commodity for speculation.
"White refined sugar is trading in the global market at about $580 per tonne at present, with a trend to rise to $600 sometime soon. So the overall outlook of the industry's income from exports will still be bright over the next few years," he said.
At this rate, exported sugar remains relatively more expensive than domestic sugar and does not provide a persuasive margin for traders to smuggle the domestic output for sale to overseas consumers.
Chalush Chinthammit, assistant vice-president of KSL Group Plc, pointed out that local authorities should find measures to block illegal attempts to export local sugar only when the export price surges above $600 per tonne.
"Next month, related industry bodies will discuss domestic sugar allocation for the following harvesting year, which should be higher than this year's allotted quotas due to the yearly increase in domestic consumption," Mr Chalush said.
"So even if the export price is higher,ensuring sufficiency of domestic consumption is the first priority."
So far, millers and farmers have sold 72% of the export quota in the 2009-10 harvesting year at an average price of 18 cents per kilogramme.
The earlier-than-usual selling agreements are attributed mainly to the attractive price.
Thanks to these factors, local cane farmers can expect to receive more than 1,000 baht per tonne for their cane, compared to 830 baht in the 2008-09 harvesting season.
The crops with higher CCS or sweetness yield should fetch even more per tonne, an incentive for cane farmers to work harder to increase their yields and expand cultivation land.
Mr Sirivuthi, also president of the Thai Ethanol Manufacturers Association, also discussed the ethanol price outlook, saying that the price of molasses had risen lately due to seasonal tight supply, which should improve when the cane-crushing season starts in November.
He still insists the molasses price increase has nothing to do with expensive sugar prices.
"One way to solve this is for petrol operators to increase their ethanol stocks. The Energy Ministry has introduced this initiative, as well as regulations to stabilise the ethanol price,"said Mr Sirivuthi.
Wednesday, September 16, 2009
INDUSTRIES READY TO STAND IN DEFENCE AGAINST US CHARGES
Three Thai industries-shrimp, garment and sugar-may face difficulties in exports to the US next year due to accusations of hiring child and migrant labour.
Kessiri Siripakorn, minister (commercial) for the Office of Commercial Affairs in Washington DC, said the US Labour Department had issued an announcement against the industries.
"Thai industries will have 90 days, until the middle of December, to clarify about the accusations. If they may be subjected to trade barriers," said Kessiri.
She called for the government and related industries to discuss the matter and present clear evidence to defend their industries.
Kessiri warned that under the Barack Obama administration, all industries must be aware of new non-tariff barriers, particularly ones focusing on labour and environment.
Thai manufacturers would face greater difficulties in exporting if they do not promptly deal with rising non-tariff barriers, she said.
Poj Aramwattananont, president of Thai Frozen Foods Association, said the US government report was untrue and the association had already presented evidence to the US Embassy in Bangkok.
The association will also present evidence regarding the matter to Washington as the association has frequently worked in cooperation with Immigration Custom Enforcement for inspecting all factories and their suppliers to ensure they have not hired any child or migrant labour in the industry.
So far, more than 1,000 factories have been investigated. The industry employs more than a million people. We are confident no child or migrant labour was hired in our industry, Poj said.
To ensure that the shrimp and other industries will not face any obstacles resulting from the report, the association will soon meet the Foreign Ministry and related Thai government agencies to clarify the issue to the US government.
Wallop Vitanakorn, secretary general of the Thai Garment Manufacturers Association, said the US report must have been the result of a misunderstanding.
He said most garment exporters to the US must normally comply with high standards required by their importers, including labour issues.
Export of garments to the US must follow a "code of conduct" which specifies that no migrant labour of child labour must be hired in the industry. Moreover, under the agreement between Thai garment manufacturers and American buyers, it states that employers must have a fair contract with laborers, including restricting maximum period of work to 60 hours a week, and set a fair payment and days off, as per the law.
Wallop said American buyers also regularly send teams to inspect their factories every six months to ensure the producers had followed the code of conduct.
He said it was impossible for garment exporters to break this tight rule. The association will soon cooperate with the Thai government and collect information to defend against this accusation.
Under the Barack Obama administration, all industries must be aware of new no tariff barriers, particularly ones focusing on labour and environment.
Kessiri Siripakorn, minister (commercial) for the Office of Commercial Affairs in Washington DC, said the US Labour Department had issued an announcement against the industries.
"Thai industries will have 90 days, until the middle of December, to clarify about the accusations. If they may be subjected to trade barriers," said Kessiri.
She called for the government and related industries to discuss the matter and present clear evidence to defend their industries.
Kessiri warned that under the Barack Obama administration, all industries must be aware of new non-tariff barriers, particularly ones focusing on labour and environment.
Thai manufacturers would face greater difficulties in exporting if they do not promptly deal with rising non-tariff barriers, she said.
Poj Aramwattananont, president of Thai Frozen Foods Association, said the US government report was untrue and the association had already presented evidence to the US Embassy in Bangkok.
The association will also present evidence regarding the matter to Washington as the association has frequently worked in cooperation with Immigration Custom Enforcement for inspecting all factories and their suppliers to ensure they have not hired any child or migrant labour in the industry.
So far, more than 1,000 factories have been investigated. The industry employs more than a million people. We are confident no child or migrant labour was hired in our industry, Poj said.
To ensure that the shrimp and other industries will not face any obstacles resulting from the report, the association will soon meet the Foreign Ministry and related Thai government agencies to clarify the issue to the US government.
Wallop Vitanakorn, secretary general of the Thai Garment Manufacturers Association, said the US report must have been the result of a misunderstanding.
He said most garment exporters to the US must normally comply with high standards required by their importers, including labour issues.
Export of garments to the US must follow a "code of conduct" which specifies that no migrant labour of child labour must be hired in the industry. Moreover, under the agreement between Thai garment manufacturers and American buyers, it states that employers must have a fair contract with laborers, including restricting maximum period of work to 60 hours a week, and set a fair payment and days off, as per the law.
Wallop said American buyers also regularly send teams to inspect their factories every six months to ensure the producers had followed the code of conduct.
He said it was impossible for garment exporters to break this tight rule. The association will soon cooperate with the Thai government and collect information to defend against this accusation.
Under the Barack Obama administration, all industries must be aware of new no tariff barriers, particularly ones focusing on labour and environment.
Brisk sales to India
Sales of Thai white sugar to India, the world's largest sugar consumer, are expected to reach 200,000 tonnes by year-end, with around 75,000 tonnes already traded so far, dealers said yesterday.
India has allowed mills to import duty-free raw sugar until March and white sugar up to November to ensure domestic supply during the AugustOctober festive season, when demand rises for sweets.
"I personally think 200,000 tonnes of sugar from Thailand will reach India before the New Year," said Kun Chalermkiatkul, international marketing manager at Mitr Phol Sugar,the country's biggest miller.
India is filling the supply gap with imports after poor monsoon rains cut domestic output. It was estimated to have imported 215,000 tonnes of white sugar from various sources,with around 30% coming from Thailand, said Mr Kun.
Demand from India has been a big factor in the rise of global sugar prices to a 28-year high in recent weeks.
India has allowed mills to import duty-free raw sugar until March and white sugar up to November to ensure domestic supply during the AugustOctober festive season, when demand rises for sweets.
"I personally think 200,000 tonnes of sugar from Thailand will reach India before the New Year," said Kun Chalermkiatkul, international marketing manager at Mitr Phol Sugar,the country's biggest miller.
India is filling the supply gap with imports after poor monsoon rains cut domestic output. It was estimated to have imported 215,000 tonnes of white sugar from various sources,with around 30% coming from Thailand, said Mr Kun.
Demand from India has been a big factor in the rise of global sugar prices to a 28-year high in recent weeks.
Tuesday, September 15, 2009
Sugar body acts to avert speculation,hoarding
Authorities will act to prevent the possibility of a sugar shortage amid concern that speculation will increase and lead households to stockpile sugar.
There is potential for a shortage because of "fake demand" spurred by speculation at a time of high world prices for the commodity, according to Prasert Tapaneeyangkul, the secretary-general of the Office of the Cane and Sugar Board (OCSB).
Global sugar prices are currently at a 28-year high because of shortages resulting from adverse weather and poor cane harvests in some producing countries. But Mr Prasert says speculation by some traders is also driving consumers to hoard goods.
"If the panic escalates and leads to more stockpiling and shortages on store shelves, we will urge wholesalers to accelerate their shipments to retail stores as a primary solution to fill the shelves,"he said.
If stepped-up shipments fail to trim the shortage, the OCSB will act to make more sugar available for the domestic market.
Normally, sugar from mills is required to be delivered to wholesalers for storage within 15 days, but shippers can ask for extensions if they face trouble with transport or poor weather, Mr Prasert said.
If some wholesalers attempt to delay shipments to feed speculation, their requests would be refused, he said.
"If these measures still fail to improve the situation, we will ask sugar millers to start their crushing season faster," he said.
The cane crushing season normally starts in late November with the first lot of sugar produced in early December.
At present, nearly 500,000 tonnes of domestic sugar are yet to be disbursed from mills. Officials estimate that 401,500 tonnes of sugar are needed until the first lot of sugar from the 2009-10 harvest season is produced.
The OCSB is preparing to add the remaining one million tonnes of sugar from the export quota to the domestic quota ease a local shortage if necessary.
Mr Prasert said the OCSB's role was to monitor sugar production for domestic sufficiency, along with storage and distribution from mills to the market. Other aspects of market regulation are the job of the Internal Trade Department at the Commerce Ministry.
There is potential for a shortage because of "fake demand" spurred by speculation at a time of high world prices for the commodity, according to Prasert Tapaneeyangkul, the secretary-general of the Office of the Cane and Sugar Board (OCSB).
Global sugar prices are currently at a 28-year high because of shortages resulting from adverse weather and poor cane harvests in some producing countries. But Mr Prasert says speculation by some traders is also driving consumers to hoard goods.
"If the panic escalates and leads to more stockpiling and shortages on store shelves, we will urge wholesalers to accelerate their shipments to retail stores as a primary solution to fill the shelves,"he said.
If stepped-up shipments fail to trim the shortage, the OCSB will act to make more sugar available for the domestic market.
Normally, sugar from mills is required to be delivered to wholesalers for storage within 15 days, but shippers can ask for extensions if they face trouble with transport or poor weather, Mr Prasert said.
If some wholesalers attempt to delay shipments to feed speculation, their requests would be refused, he said.
"If these measures still fail to improve the situation, we will ask sugar millers to start their crushing season faster," he said.
The cane crushing season normally starts in late November with the first lot of sugar produced in early December.
At present, nearly 500,000 tonnes of domestic sugar are yet to be disbursed from mills. Officials estimate that 401,500 tonnes of sugar are needed until the first lot of sugar from the 2009-10 harvest season is produced.
The OCSB is preparing to add the remaining one million tonnes of sugar from the export quota to the domestic quota ease a local shortage if necessary.
Mr Prasert said the OCSB's role was to monitor sugar production for domestic sufficiency, along with storage and distribution from mills to the market. Other aspects of market regulation are the job of the Internal Trade Department at the Commerce Ministry.
Monday, September 14, 2009
Sugar miller expands capacity
Thai Roong Ruang Group, the country's second-biggest sugar miller, has expanded capacity because it expects its exports to rise 10% in 2010, helped by a revival in demand from India, said executive director Utai Asdatorn.
The company is forecasting exports of nearly 1 million tonnes in 2010, up from about 890,000 tonnes expected this year, he said.
"We have expanded our capacity as we see a bigger crop and strong demand,"he said."Soaring world sugar prices have encouraged millers to produce more sugar and that means farmers are growing more cane."
The New York raw sugar contract for October delivery, the global benchmark,settled at 20.99 US cents a pound on Wednesday after hitting a 28-year high last week at 24.85 cents.
In the current 2009-10 crop, Thailand,Asia's biggest sugar exporter is forecast to produce about 7.6 million tonnes from about 72-76 million tonnes of cane. The 2009-10 crushing season will start in November and end in April.
Thai Roong Ruang, which runs seven sugar mills, is one of five big Thai millers to have expanded capacity to meet rising global demand. After the expansion, it is likely to produce 1.4 million tonnes of sugar in 2009-10, up from 1.2 million tonnes in the previous crop.
Mr Utai said the company had contracted to sell around 50% of its 2009-10 production in advance through international trading houses.
"We sell mostly to our traditional customers in Asia and the Middle East. How-ever, we expect to sell more sugar to India next year," he said.
India, the world's biggest sugar consumer, has been largely absent from the Thai market for several years but tight domestic supply has forced it to import more, the main factor behind the rise in world prices in recent months.
It is expected to import around 4 million tonnes of sugar in the 2009-10 crop year due to a fall in domestic cane production caused by a poor monsoon.
Mr Utai said he expected Thai sugar production to rise gradually over the next few years as the world sugar deficit encouraged farmers to growmore cane.
The London-based International Sugar Organisation has forecast a global sugar deficit of 8.4 million tonnes in 2009-10.
The company is forecasting exports of nearly 1 million tonnes in 2010, up from about 890,000 tonnes expected this year, he said.
"We have expanded our capacity as we see a bigger crop and strong demand,"he said."Soaring world sugar prices have encouraged millers to produce more sugar and that means farmers are growing more cane."
The New York raw sugar contract for October delivery, the global benchmark,settled at 20.99 US cents a pound on Wednesday after hitting a 28-year high last week at 24.85 cents.
In the current 2009-10 crop, Thailand,Asia's biggest sugar exporter is forecast to produce about 7.6 million tonnes from about 72-76 million tonnes of cane. The 2009-10 crushing season will start in November and end in April.
Thai Roong Ruang, which runs seven sugar mills, is one of five big Thai millers to have expanded capacity to meet rising global demand. After the expansion, it is likely to produce 1.4 million tonnes of sugar in 2009-10, up from 1.2 million tonnes in the previous crop.
Mr Utai said the company had contracted to sell around 50% of its 2009-10 production in advance through international trading houses.
"We sell mostly to our traditional customers in Asia and the Middle East. How-ever, we expect to sell more sugar to India next year," he said.
India, the world's biggest sugar consumer, has been largely absent from the Thai market for several years but tight domestic supply has forced it to import more, the main factor behind the rise in world prices in recent months.
It is expected to import around 4 million tonnes of sugar in the 2009-10 crop year due to a fall in domestic cane production caused by a poor monsoon.
Mr Utai said he expected Thai sugar production to rise gradually over the next few years as the world sugar deficit encouraged farmers to growmore cane.
The London-based International Sugar Organisation has forecast a global sugar deficit of 8.4 million tonnes in 2009-10.
Friday, September 11, 2009
SUGAR PRICES TO BE PUT UNDER STRINGENT CONTROL
The Internal Trade Department is launching urgent measures to control the price of sugar nationwide and stop the hoarding of the commodity by people speculating on the price.
After meeting yesterday with sugar wholesalers and millers to tackle the nationwide sugar shortage, Yanyong Phuangrach, the department's director-general, said governing bodies at 62 provinces would be told to introduce price-control measures. The price-control measures have already been implemented in 14 provinces, including Bangkok.
The department plans to send a team of officials to inspect warehouses across the country and punish any traders found hoarding sugar.
Yanyong added that retailers and wholesalers have complained that sugar manufacturers were affecting their business. The press was not allowed to sit in on the meeting between the Internal Trade Department and sugar traders, because they feared influential producers would cause trouble.
"Traders said that some sugar producers cut their supply over the past month, while some retailers were forced to pay tea money to maintain their supply," Yanyong said.
As a result, sugar prices have jumped from Bt10 to Bt50 per 50-kilogram sack, he said.
The meeting also reported that rising sugar prices in the world market has also encouraged some sugar plants to export quota Gor (A) sugar, which is reserved specifically for domestic consumption, causing a significant shortage in the country.
The average price of sugar in the world market is quoted at between Bt32 and Bt35 per kg, while domestic retail price is quoted at Bt23.50/kg. Should manufacturers choose to export the sugar, they get to make Bt10 per kilogram.
The department, in cooperation with the Industry Ministry and other involved agencies, will try to efficiently manage the 5.7-million-kilogram stockpile of sugar.
Yanyong said the government would encourage producers to gradually release these stockpiles every week to ensure enough supply. It will also seek measures to stop manufacturers from exporting quota Gor (A) sugar.
Meanwhile, Prakit Pradipasen, chairman of the Thai Sugar Millers Corporation, said its 46 members had never asked for bribes from wholesalers or retailers.
He also insisted that no manufacturers had smuggled sugar out of the country because controls along the border were far too stringent.
To ease the domestic shortage, the corporation also agreed to delay the export of quota Kor (C) sugar, which is normally reserved for export. Millers will also make moves to inject more sugar into the market if necessary, he added.
After meeting yesterday with sugar wholesalers and millers to tackle the nationwide sugar shortage, Yanyong Phuangrach, the department's director-general, said governing bodies at 62 provinces would be told to introduce price-control measures. The price-control measures have already been implemented in 14 provinces, including Bangkok.
The department plans to send a team of officials to inspect warehouses across the country and punish any traders found hoarding sugar.
Yanyong added that retailers and wholesalers have complained that sugar manufacturers were affecting their business. The press was not allowed to sit in on the meeting between the Internal Trade Department and sugar traders, because they feared influential producers would cause trouble.
"Traders said that some sugar producers cut their supply over the past month, while some retailers were forced to pay tea money to maintain their supply," Yanyong said.
As a result, sugar prices have jumped from Bt10 to Bt50 per 50-kilogram sack, he said.
The meeting also reported that rising sugar prices in the world market has also encouraged some sugar plants to export quota Gor (A) sugar, which is reserved specifically for domestic consumption, causing a significant shortage in the country.
The average price of sugar in the world market is quoted at between Bt32 and Bt35 per kg, while domestic retail price is quoted at Bt23.50/kg. Should manufacturers choose to export the sugar, they get to make Bt10 per kilogram.
The department, in cooperation with the Industry Ministry and other involved agencies, will try to efficiently manage the 5.7-million-kilogram stockpile of sugar.
Yanyong said the government would encourage producers to gradually release these stockpiles every week to ensure enough supply. It will also seek measures to stop manufacturers from exporting quota Gor (A) sugar.
Meanwhile, Prakit Pradipasen, chairman of the Thai Sugar Millers Corporation, said its 46 members had never asked for bribes from wholesalers or retailers.
He also insisted that no manufacturers had smuggled sugar out of the country because controls along the border were far too stringent.
To ease the domestic shortage, the corporation also agreed to delay the export of quota Kor (C) sugar, which is normally reserved for export. Millers will also make moves to inject more sugar into the market if necessary, he added.
Thursday, September 3, 2009
Dept keeps close watch for malpractice as sugar prices spiral
With world sugar prices aiming for the moon, the Internal Trade Department has had to keep a close eye on domestic retail prices to prevent scalping, hoarding or smuggling.
Dircetor-general Yanyong Puangrach said yesterday that department aimed to ensure that there would be enough sugar for consumption in the country.
Global sugar prices how are skyrocketing. White sugar at the port of London was traded as high as the equivalent of Bt32 per kilogram with transport cost and Bt19 without transport cost.
Domestic sugar prices are now much lower. Pure white sugar sells for Bt23.60 per kilogram, grade 1 and 2 sugar for Bt22.60 and brown sugar for Bt22.10.
This price gap i attractive to smugglers, who can reap profits from selling cheap Thai sugar to cross-border markets.
This might also cause retailers to sell sugar over the maximum price set by the department, without seeking an allowance.
To deal with the problem of smuggling, the department would ask for approval from Commerce Minister Porntiva Nakasai to issue stricter rules for retail sugar prices.
In case sugar is found selling over its ceiling price or smuggled out, the department can ask the central committee on goods and services to have manufacturers declare their sugar stocks.
The authorities can also issue an announcement to manufactures, prohibiting them from moving their sugar.
Retailers selling over-priced sugar could face imprisonment for seven years and a fine of Bt140,000. If they refuse to sell to customers, they could be jailed for five years or fined Bt100,000, or both.
"Now, the domestic sugar supply is not considered in shortage," Yanyong said.
The sugar quota for domestic consumption in the first eight months was 19 million tonnes, while 13 million tonnes were consumed.
"It's believed that the four million tonnes of sugar remaining will be enough for the rest of this year, or four months," he added.
Dircetor-general Yanyong Puangrach said yesterday that department aimed to ensure that there would be enough sugar for consumption in the country.
Global sugar prices how are skyrocketing. White sugar at the port of London was traded as high as the equivalent of Bt32 per kilogram with transport cost and Bt19 without transport cost.
Domestic sugar prices are now much lower. Pure white sugar sells for Bt23.60 per kilogram, grade 1 and 2 sugar for Bt22.60 and brown sugar for Bt22.10.
This price gap i attractive to smugglers, who can reap profits from selling cheap Thai sugar to cross-border markets.
This might also cause retailers to sell sugar over the maximum price set by the department, without seeking an allowance.
To deal with the problem of smuggling, the department would ask for approval from Commerce Minister Porntiva Nakasai to issue stricter rules for retail sugar prices.
In case sugar is found selling over its ceiling price or smuggled out, the department can ask the central committee on goods and services to have manufacturers declare their sugar stocks.
The authorities can also issue an announcement to manufactures, prohibiting them from moving their sugar.
Retailers selling over-priced sugar could face imprisonment for seven years and a fine of Bt140,000. If they refuse to sell to customers, they could be jailed for five years or fined Bt100,000, or both.
"Now, the domestic sugar supply is not considered in shortage," Yanyong said.
The sugar quota for domestic consumption in the first eight months was 19 million tonnes, while 13 million tonnes were consumed.
"It's believed that the four million tonnes of sugar remaining will be enough for the rest of this year, or four months," he added.
Sweetener for industrial sugar users
Industrial sugar users will gain access to the cheaper domestic sugar quota if export prices surge above local ones,the Office of the Cane and Sugar Board (OCSB) has pledged.
Food and beverage manufacturers for the export market normally purchase sugar from the export quota, which his-torically has been priced lower than domestic sugar. However, world sugar prices have been surging this year because of a global supply shortfall.
The ex-factory price of white sugar is now at 20 baht per kilogramme, about two baht more than the export sugar price.
Prasert Tapaneeyangkul, the OCSB secretary-general, said industrial users now using the export quota could seek domestic sugar if export prices become more expensive.
This year, about 1.9 million tonnes of sugar are reserved for domestic con-sumption, with 63% for household usage and 37% for industrial users who serve the local market.
"We also have a surplus of about 590,000 tonnes left from last year's allocation for domestic sale that should be enough to accommodate food and beverage exporters' demand," Mr Prasert said.
Exporters have filed requests for 370,000 tonnes of export sugar this year.While 57% have already exercised their rights, the remaining 43% may or may not use their allocated quotas if export sugar becomes more expensive.
However, operators who shift to use the domestic quota will lose their right to seek export sugar next year.
"If exporters shift to use domestic sugar, the Cane and Sugar Fund, cane farmers and sugar millers could also enjoy better income," Mr Prasert said.
More usage of domestic sugar means a higher multiplier to value-added tax collection, which goes to pay down the debt of the fund, now at 20 billion baht.
The shift would also raise export sugar supply. With global prices at a 28-year high and likely to rise further, the higher revenue in the export market will also increase farmers' and millers' incomes.
Surat Thadachawasakul, the general manager of the Thailand Cane and Sugar Corporation (TCSC), which oversees sugar for export, said export prices were likely to keep rising.
"The latest reports indicate that the world sugar deficit may be wider than earlier forecast," he said.
"Brazil, the world's largest sugar producer, is expecting to deliver less than forecast to the world market while India,the world's largest sugar consumer, is expected to require more export sugar from a previously forecast shortage."
Food and beverage manufacturers for the export market normally purchase sugar from the export quota, which his-torically has been priced lower than domestic sugar. However, world sugar prices have been surging this year because of a global supply shortfall.
The ex-factory price of white sugar is now at 20 baht per kilogramme, about two baht more than the export sugar price.
Prasert Tapaneeyangkul, the OCSB secretary-general, said industrial users now using the export quota could seek domestic sugar if export prices become more expensive.
This year, about 1.9 million tonnes of sugar are reserved for domestic con-sumption, with 63% for household usage and 37% for industrial users who serve the local market.
"We also have a surplus of about 590,000 tonnes left from last year's allocation for domestic sale that should be enough to accommodate food and beverage exporters' demand," Mr Prasert said.
Exporters have filed requests for 370,000 tonnes of export sugar this year.While 57% have already exercised their rights, the remaining 43% may or may not use their allocated quotas if export sugar becomes more expensive.
However, operators who shift to use the domestic quota will lose their right to seek export sugar next year.
"If exporters shift to use domestic sugar, the Cane and Sugar Fund, cane farmers and sugar millers could also enjoy better income," Mr Prasert said.
More usage of domestic sugar means a higher multiplier to value-added tax collection, which goes to pay down the debt of the fund, now at 20 billion baht.
The shift would also raise export sugar supply. With global prices at a 28-year high and likely to rise further, the higher revenue in the export market will also increase farmers' and millers' incomes.
Surat Thadachawasakul, the general manager of the Thailand Cane and Sugar Corporation (TCSC), which oversees sugar for export, said export prices were likely to keep rising.
"The latest reports indicate that the world sugar deficit may be wider than earlier forecast," he said.
"Brazil, the world's largest sugar producer, is expecting to deliver less than forecast to the world market while India,the world's largest sugar consumer, is expected to require more export sugar from a previously forecast shortage."
Commissioner not shaken by salt plant row
The National Human Rights Commission is launching an investigation into one of its own commissioners accused of community rights violations involving a salt processing plant.
Angry villagers allege Prinya Sirisarakarn ran a salt plant in Nakhon Ratchasima province which was contributing to the degradation of their farmland.
Mr Prinya, however, insists he has done no wrong.
A network of 14 grass-roots groups in the northeastern provinces submitted a petition to the commission demanding its chair, Amara Pongsapich,look into Mr Prinya's qualifications.They say the plant at Non Thai district had a severe impact on hundreds of villagers and the environment.
The villagers claim the operation was one of eight salt processing plants in the area that contaminated water sources and soil, making the land unsuitable for growing crops.
An earlier NHRC investigated the case and found the eight plants' operations should be suspended. However,Mr Prinya continued to run his salt business, the complaint said. He was not yet a commissioner at that time.
The NHRC chair yesterday said she would invite Mr Prinya for questioning and collect information about efforts the plant was making to reduce its impact on the environment.
Ms Amara did not say when the inquiry would be completed.
"As far as I know, Mr Prinya has nothing to do with the salt mining activities," she said.
The conflict between the salt mining and salt boiling plant operators and farmers has raged for several years.The previous NHRC investigated the matter and came up with conflict resolution measures.
Ms Amara said her team would investigate whether all the parties had followed those measures.
Mr Prinya was not available for comment yesterday. However, he earlier told the villagers he no longer had a role in managing the salt processing plant and hadassigned someoneelse to take charge.
He said he was ready to be investigated and insisted he was qualified to sit on the human rights body.
Supakit Boon-anek, a representative of the villagers affected by salt mining and processing activities, said Mr Prinya was not suitable to be a human rights commissioner because he was involved in a business that affected human rights.
The allegations put more pressure on the seven-member NHRC, which took office on June 25. Civil groups and legal experts have criticised the nomination and selection of the NHRC members, saying it lacked public participation.
Angry villagers allege Prinya Sirisarakarn ran a salt plant in Nakhon Ratchasima province which was contributing to the degradation of their farmland.
Mr Prinya, however, insists he has done no wrong.
A network of 14 grass-roots groups in the northeastern provinces submitted a petition to the commission demanding its chair, Amara Pongsapich,look into Mr Prinya's qualifications.They say the plant at Non Thai district had a severe impact on hundreds of villagers and the environment.
The villagers claim the operation was one of eight salt processing plants in the area that contaminated water sources and soil, making the land unsuitable for growing crops.
An earlier NHRC investigated the case and found the eight plants' operations should be suspended. However,Mr Prinya continued to run his salt business, the complaint said. He was not yet a commissioner at that time.
The NHRC chair yesterday said she would invite Mr Prinya for questioning and collect information about efforts the plant was making to reduce its impact on the environment.
Ms Amara did not say when the inquiry would be completed.
"As far as I know, Mr Prinya has nothing to do with the salt mining activities," she said.
The conflict between the salt mining and salt boiling plant operators and farmers has raged for several years.The previous NHRC investigated the matter and came up with conflict resolution measures.
Ms Amara said her team would investigate whether all the parties had followed those measures.
Mr Prinya was not available for comment yesterday. However, he earlier told the villagers he no longer had a role in managing the salt processing plant and hadassigned someoneelse to take charge.
He said he was ready to be investigated and insisted he was qualified to sit on the human rights body.
Supakit Boon-anek, a representative of the villagers affected by salt mining and processing activities, said Mr Prinya was not suitable to be a human rights commissioner because he was involved in a business that affected human rights.
The allegations put more pressure on the seven-member NHRC, which took office on June 25. Civil groups and legal experts have criticised the nomination and selection of the NHRC members, saying it lacked public participation.
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