Thai businesses are projected to face losses of up to 1 billion baht due to China’s ban on sugar syrup and premixed powder (a mixture of sugar and other food ingredients) exports from Thailand. The disruption has left shipments stuck in Chinese ports, according to industry association, reported Reuters.
In December, China halted imports of syrup and premixed powder from Thailand, the world’s second-largest sugar exporter, citing concerns about factory hygiene.
“At first, we estimated the loss at 300 million to 400 million baht, but now we expect it to reach 1 billion,” said Todsaporn Ruangpattananont, president of the Thai Sugar Trade Industry Association, speaking to Reuters.
Todsaporn, whose group represents 44 sugar mills primarily supplying China, added that he had written to the Thai government urging faster negotiations with Chinese officials.
“The sugar is in Chinese ports, and we’re paying fines every day,” he explained.
Todsaporn suggested that one of the motivations behind the ban might be China’s desire to protect its domestic sugar industry in light of increasing imports from Thailand.
“Claims about the quality of our sugar don’t hold up,” he said. “There has never been any evidence of quality issues with our products in the past.”
Thai officials reported last week that China had requested inspections of dozens of Thai factories before it would consider lifting the ban, citing hygiene concerns. In response, the Thai government submitted a list of certified factories licensed by the Thai Food and Drug Administration (FDA), along with details on food safety regulations, to China on January 14.
If the ban is not lifted, Thailand could lose demand for up to 1 million metric tonnes of sugar this year, equivalent to the amount used in the production of syrup and premixed powder last year, according to Todsaporn.
“This will definitely impact domestic prices,” he warned.
