Thai producers fear zero import tariffs next year
Thai sugar producers fear a flood of cheaper sugar imports after the regional common market or ASEAN Economic Community comes into force at the end next year, putting downward pressure on domestic sugar prices, Reuters reports. Thailand fixes its retail price above market rates to ensure profits for farmers. But with around 3 million mt of Thai sugar still unsold and global prices down over 13% this year on plentiful supplies Thailand needs to cut its retail price to avoid a further buildup of stocks.
A spokesman for the Thai Sugar Millers Corporation Limited said the body plans to propose to the military government that it frees up domestic retail prices, which miller and refiners say are about 5 baht higher than they should be at around 23.5 baht (US$0.73) per kg, basis a world price of 15 cents per pound.