Indian sugar mills association

Thailand lowers sugar export volume, sets aside extra for ethanol production

BANGKOK, May 15 (Reuters) - Thailand has allocated an

additional 300,000 tonnes of raw sugar for ethanol production

this year, the country's cane and sugar regulator said on

Tuesday, amid weak prices and a large global surplus of the

commodity.

Thailand, the world's second-largest sugar exporter after

Brazil, expects at least 14 million tonnes of sugar from a

record 134 million tonnes of cane in the 2017/18 production

year, boosted by favorable weather conditions.

The additional quantity is apart from 200,000 tonnes of raw

sugar, which the country has already set aside for biofuel

production every year.

"Prices of raw sugar have decreased, while prices of

tapioca, which is traditionally used to produce ethanol, have

increased," Ekapat Wangsuwan, deputy secretary-general, Office

of Cane and Sugar Board, told Reuters.

"So producers are turning to more raw sugar for ethanol

production."

Thailand consumes about 2.6 million tonnes of sugar

domestically and exports the rest.

Wangsuwan said taking away 300,000 tonnes from the quantity

available for exports will help improve sugar prices.

"A lower export volume will create a psychological effect

and increase sugar prices," he said.

(Reporting by Panarat Thepgumpanat; Writing by Patpicha

Tanakasempipat, Editing by Sherry Jacob-Phillips)

News