Industry News
After the drought, production has declined. The estimated domestic sugar production, the third largest in the world, has been lowered again
Recently, Rangsit Hiangrat, head of Thai Sugar Millers Corp, stated that the organization has lowered the upper limit of Thailand's sugar production forecast for 2023-24 by 500000 to 7.5 million tons. If Thailand's sugar production this season meets expectations, it will be one-third lower than the previous season's production.
"During the critical period when sugarcane needs the most water for growth, Thailand does not receive rainfall," Rangsit said in an interview. "Under the influence of climate change," rainfall arrives late, but plants have already developed poorly, so subsequent rainfall is of no use. "
Thailand is the third largest sugar producing country and the second largest sugar exporting country in the world. Government data shows that due to the poor growth of sugarcane caused by climate drought, the sugar extraction rate of sugarcane in the country has dropped to the lowest level in at least 13 years.
According to the office of the Sugar and Sugar Industry Commission of Thailand, since the start of the sugarcane production season on December 10th last year, Thai sugar mills have produced 4.9 million tons of sugar from approximately 49.57 million tons of sugarcane crushing. This means that as of February 1st, the sugar extraction rate of sugarcane in Thailand is only about 9.9%, lower than the previous season's 11.8%.
As a comparison, the committee's data shows that in the previous 12 years, Thailand's sugar production per ton of sugarcane exceeded 100 kilograms, equivalent to a sugar production rate of over 10%.
Rangsit stated that due to poor sugar production, the Thai sugar mill is expected to complete the crushing work by this month or March. By contrast, in previous years, it usually took early April to complete the pressing work.
The industry organization estimates Thailand's sugar production for 2023-24 to be 7-7.5 million tons, which is not only lower than the 7-8 million tons estimated in November last year, but also much lower than the 9 million tons estimated in September last year.
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