Sugar millers push for price float
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The 3 Thai Sugar Mills Associations are pushing for the end of government control over sugar prices ahead of the Asean Economic Community.
Cherdpong Siriwit, the newly appointed chairman of the associations, said that floating the domestic sugar price is a measure supported by the associations. To guarantee sustainable income for cane growers, the associations also urged the government to allocate more funding for research and development to improve yields.
“We are moving with global and regional trends. In preparation for the AEC in 2015, we support the floating of domestic sugar prices in accordance with the world sugar price. This means the government should abandon domestic sugar price control,” said Cherdpong, who once served as a permanent secretary to the Energy Ministry.
Sugar is one of the commodities that will benefit from the free flow of goods, services and investment once Asean becomes a single market.
However, Thai sugar millers have said that the price differences between domestic and international markets pose a likely increase in smuggling when international prices decline and shortages when international prices go up.
To the associations, floating would also boost investment among private operators. In preparation for the single market, they need to improve sugar cane yield.
According to Cherdpong, the 3 Thai Sugar Mills Associations are ready to work with the government to find a way of increasing sugarcane yield per rai, and undertake research on new cane varieties with high sucrose and pest resistant qualifications.
“Increasing yield is a measure that needs time and investment. I believe sugar mills and cane growers should jointly advocate this policy with the government and related agencies for the industry’s long term benefits," he said.
Thailand is now the world’s second biggest sugar exporter.
Cherdpong noted that the Thai sugar industry has maintained its strength so far, but improvement was necessary to meet new challenges.
