Source: bnews.vn
This could affect the supply of sugar in the global market because Thailand is the world’s second largest sugar exporter after Brazil.
Sugarcane fields in Nong Nok Kaeo, Thailand. Photo: Bloomberg
Mr. Verasak Kwanmuang, representative of farmers on the board of directors of OCSB, said that sugarcane output in the 2023-2024 crop year reached 82.2 million tons, down 11.7 million tons compared to the previous crop year. The reason, according to Mr. Verasak, is due to drought causing water shortage, dealing a strong blow to the sugarcane growing area in Thailand.
OCSB also said that in the 2023-2024 crop year, Thai farmers provided a total of 82.2 million tons of sugarcane for crushing at sugar factories, of which 70% was fresh sugarcane and the rest was burned sugarcane. Some 57 Thai sugar factories produced 8.77 million tons of sugar and 3.55 tons of molasses in the 2023-2024 crop year. The amount of sugar reaches 107 kg/ton of sugarcane, with the sweetness of commercial cane sugar being 12.35.
According to OCSB, global sugar prices have dropped to 19 US cents/pound (1 pound = 0.454 kg) from 25 US cents/pound, amid increased sugarcane supply from Brazil and India as the global economy stagnates. stagnation causes sugar demand to decrease.
OCSB predicts sugarcane output will increase in the 2024-2025 crop year, as farmers are likely to switch from growing cassava to sugarcane because of higher prices.
