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.
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