March 24, 2015
Sugaronline | http://goo.gl/llBFYc
Industry Minister Chakramon Phasukavanich said Monday the ministry would ask the Cabinet to amend the Cane and Sugar Act to facilitate the opening of about 50 sugar processing plants this year, according to Thailand's The Nation newspaper.
Meanwhile, Prime Minister General Prayut Chan-o-cha has hinted that the automobile industry would be persuaded to assemble more electric and hybrid vehicles to maintain the country's leadership in the eco-car market.
The Cane and Sugar Act does not allow sugar factories to be located within 80 kilometres of each other. This regulation is preventing some sugar operators from expanding their manufacturing bases and discouraging some rice operators from switching to sugar production.
"More than 50 sugar factories are waiting for construction approval and we're aiming to clear them within 90 days so that we can know which factory will be allowed to open," Chakramon told the Federation of Thai Industries' annual meeting yesterday.
"The zoning plan that Commerce Minister Chatchai Sarikalaya is managing will increase the number of sugarcane plantations to replace rice fields in the central and northeast regions, so the current 80-kilometre zoning will be too far and it could be reduced down to around 50 kilometres, which is one of the options that we will propose to the Cabinet," he said.
More sugar factories would exist if the law was changed. This would support Thailand's position as the world's second largest producer of sugar while easing the pain felt by rice farmers' from falling global rice prices.
PM Prayut said the country and the Board of Investment might not follow through on Phase 3 of the eco car scheme since global demand is expected to change to electric vehicles and hybrids.
Some people even believe that Thailand could produce a hydrogen-powered car, but that is "too much of a far-fetched idea".
"These people with the hydrogen car idea must have watched too many movies since it's just a theory at the moment... I'm talking about practical things since the demand for simple eco cars is expected to slow down," he said.
"If we keep on providing privileges for eco cars there will be an excess of supply and the demand for it will be lower, which is similar to the first car policy situation."