January 11, 2022
Bangkok Post | https://bit.ly/3tA5VBu
Sugarcane output is expected to reach 85-90 million tonnes in the 2021-22 crop year amid better business prospects in the sugar industry, says the Federation of Thai Industries (FTI).
The output, which could be used to produce 9-10 million tonnes of sugar, is lower than an estimate of 100 million tonnes made by the Thai Sugar Millers Corporation (TSMC) last year.
TSMC said earlier that sugarcane output in the 2021-22 crop year was likely to fall due to drought and a shift to other crops. However, the FTI is optimistic about the current situation.
"The output for the 2021-22 crop year is not bad. We also expect Thailand to produce more sugar for the export market," said Chalush Chinthammit, chairman of the FTI's Sugar Industry Club.
He said the Thai sugar industry is improving, with more sugarcane output and better prices on the world market.
Global sugar prices have risen and reached a high level of 18 US cents per pound. This will benefit the domestic sugar industry and economy.
Thailand's 57 sugar factories have already received 20 million tonnes of sugarcane from farmers since the cane crushing season started last month. The crushing process for the 2021-22 crop year is expected to end in the next few months.
The crushed sugarcane had a commercial cane sugar (CCS) sweetness level of 11, said the club, adding that sugar considered to be high quality must have a CCS level of at least 10.
"High CCS will help the Thai sugar industry maintain a high sugar quality while global sugar prices are on the rise," said Mr Chalush.
His club believes the domestic sugar industry has already bottomed out after suffering for many years. From now on, he believes the industry will continue to grow.
Sugarcane output stood at 134.9 million tonnes in the 2017-18 crop year, before plunging to 74.8 million tonnes in the 2019-20 crop year and 66.6 million tonnes in the 2020-21 crop year.
The club expects sugarcane output in the 2022-23 crop year to be similar to that of the 2021-22 crop year.
Thailand is facing a shortage of 100,000 workers, mostly migrants from neighbouring countries, in sugarcane plantations as they have been unable to easily travel to Thailand amid the pandemic.