Thailand’s sugar production falls due to drought

Published 2024년 4월 22일

Tridge summary

Thailand, one of the world's largest sugar exporters, has experienced a significant decrease in sugar cane production for the 2023-24 crop year due to severe drought, with production dropping by 11.7 million tonnes to 82.2 million tonnes. This reduction has resulted in 57 sugar mills producing 8.77 million tonnes of sugar, potentially impacting the global sugar supply. Despite a global decrease in sugar prices influenced by increased supplies from Brazil and India and a sluggish global economy, the Office of the Cane and Sugar Board (OCSB) is concerned about the impact on domestic sugar prices and the sugar cane fund. However, there is optimism for the 2024-25 crop year as farmers may shift from cassava to sugar cane cultivation, attracted by higher sugar prices.

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Original content

Thailand’s sugar cane output declined in the 2023-24 crop year, resulting from severe drought, which may affect sugar supply in the global market, says the Office of the Cane and Sugar Board (OCSB). The country is the world’s second-largest sugar exporter after Brazil, meaning a drop in production could pressure the global market. “Our sugar cane harvests fell by 11.7 million tonnes, down from 93.9 million tonnes in the 2022-23 crop year,” said Verasak Kwanmuang, a farmers’ representative who sits on the board. In the 2023-24 crop year, farmers delivered a total of 82.2 million tonnes of cane for crushing at sugar factories, with 70% fresh sugar cane and the remainder burned cane. “Drought caused a water shortage, which dealt a blow to sugar cane plantation in Thailand,” said Mr Verasak. Some 57 sugar mills produced 8.77 million tonnes of sugar and 3.55 tonnes of molasses in the 2023-24 crop year. The amount of sugar tallied 107 kilogrammes per tonne of sugar cane, with a ...

Source: UkrAgroConsult