TSMC seeks ministry's assistance

TSMC seeks ministry's assistance

The Thai Sugar Millers Corporation (TSMC) plans to ask the Industry Ministry to help Thai sugar millers pressure the Indian government as its price and export subsidies are suspected of affecting sugar prices in the world market.

Thai sugar exports have been affected by price fluctuations due to the subsidies, which violates World Trade Organization rules, said TSMC.

Pramode Vidtayasuk, president of TSMC, said the Australian Sugar Milling Council (ASMC) and Australian cane growers agreed to join Thailand in trying to pressure the Indian government, which has run the subsidy programme for more than 10 years.

"TSMC believes subsidies for sugar prices cost the Thai sugar industry around 10 billion baht a year," he said.

TSMC said ASMC and Australian cane growers are seeking cooperation from cane growers and sugar exporters in Thailand, Brazil and Guatemala.

India is the world's third-largest sugar exporter, behind Thailand in second place with the export of 6 million tonnes of sugar in 2020.

Australia claims the controversial subsidies have led to a surplus of sugar supply and India's exports have also decreased global sugar prices.

The subsidies allegedly caused the Australian industry to lose revenue from sugar exports, with damages estimated at A$189 million or 4.58 billion baht.

Australia exported 3 million tonnes of sugar in 2020.

Mr Pramode expects sugarcane output in the 2021-22 crop year to be only 90 million tonnes because drought continues to affect sugar farming.

"Sugar is traded in the futures market and this year prices have increased due to drought in Thailand and other countries," Mr Pramode said.

Do you like the content of this article?