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.