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."