Industry officials believe Beijing's ongoing ban on syrup exports from Thailand for food safety reasons will not affect sugar manufacturers in the country, says the Office of the Cane and Sugar Board (OCSB).
Chinese authorities cited concerns over hygiene standards at Thai factories as the main reason for the ban, but the move is viewed as a trade barrier against syrup shipments from Thailand, which have continued to increase.
OCSB secretary-general Bainoi Suwanchatree said officials do not expect the ban to have a serious impact on Thai sugar producers as they have an extensive customer base, exporting sugar to many countries worldwide.
The Industry Ministry and Commerce Ministry as well as the Customs Department are holding discussions regarding the ban, he said.
Under a free trade agreement between China and Asean, duty fees are waived on exports of syrup to China. Beijing may be concerned an increase in syrup imports could affect its sugar industry, said Mr Bainoi.
"China seems to be applying a safeguard measure against imported syrup to protect Chinese sugar producers and sugar cane farmers, as syrup imports increase annually," he said.
Beijing may also be dealing with Chinese syrup companies attempting tax evasion that use Thailand as an export base, said Mr Bainoi.
These companies reportedly purchase sugar from Thai sugar manufacturers to produce syrup before exporting products to China.
China is a leading market for syrup imported from Thailand and Brazil.
Thailand is the third-largest sugar producer in the world, with 58 factories at present. Brazil is the leading sugar producer, followed by Australia.
Thailand began exporting syrup to China 7-8 years ago, initially exporting 100,000 tonnes a year. The amount has continued to increase, reaching 600,000-700,000 tonnes in 2023 and 1.2 million tonnes last year, according to the OCSB.
Beijing decided to stop syrup imports from Thailand on Dec 10, 2024, causing Thai cargo ships containing more than 400 million baht's worth of syrup to be left stranded off the coast of China.