Thailand’s cabinet has approved a 10% or 2 baht ($0.05) increase in domestic sugar prices, Commerce Minister Phumtham Wechayachai told reporters on Tuesday.
The announcement comes just weeks after the government reversed
a 20% price increase in domestic sugar prices and classified it as a controlled good, which requires additional approval for exports
of over one ton.
“This is appropriate action taking into account sugar cane farmer expenses,” Phumtham said.
Thailand is the world’s second-largest exporter of sugar after Brazil.
Thai sugar output has been hit by drought and the country is this year is expected to produce 8 million tons, of which 2.5 million will be consumed domestically and 5.5 million tons will be exported, government data shows.
Last year, the country exported 7.69 million tons of sugar. ($1 = 36.0500 baht) (Reporting by Panarat Thepgumpanat and Chayut Setboonsarng; Editing by Kanupriya Kapoor)