Early measures urged to prevent sugar smuggling

Sirivuth Siamphakdee, president of the Thai Sugar Millers Corporation’s public relations working group, said smuggling would become more widespread, as this country’s domestic sugar prices are the lowest in Asean.

A study by the corporation found that based on information from international trade offices and Thailand’s Cane and Sugar Board, in baht terms, sugar is sold in Thailand at the lowest price. Only when sugar millers meet domestic demand estimates, known as Quota A, can they export the remaining output.

Sirivuth said the low price would encourage more smuggling of Thai sugar to other Asean nations once there is greater connectivity under the AEC. This could result in shortages in the Kingdom.

The study found that regular white sugar is sold in Thailand at Bt22.60 per kilogram and pure white sugar at Bt23.60. In Laos and Cambodia, the price of white sugar is Bt30-Bt33 per kilo, while in Myanmar it is Bt30.01 and in Vietnam Bt25.50-Bt28.50. The retail price of pure white sugar in Indonesia is Bt33.95 per kilo, in Singapore Bt40.35, and in the Philippines Bt41.20.

The retail prices of various grades of sugar in China range from Bt57.09 to Bt77.85 per kilogram, in Japan they average Bt66.90, in South Korea Bt49.50 and in Australia Bt59.75.

"Thailand’s sugar output is huge, as we are a major sugar producer and exporter to the world. But the quotas for domestic and export markets are clearly set. If Quota A is kept at its current level and part of it is smuggled out of the country, this would affect domestic consumers," he said.

He added that the corporation wanted to see the state come up with pre-emptive measures soon to deal with this issue. They should also ensure that the revenue that sugar cane farmers gain from sugar sales, at 70 per cent of total sales, could cover their costs and provide a sufficient profit margin for them to make a living.