Dozens of Thai companies have halted production after suffering losses of $60 million due to China’s ban on sugar syrup imports, an industry group said, following failed efforts by Thailand to persuade China to lift the restrictions.
China imposed the ban on syrup and premixed powder imports from Thailand, the world’s second-largest sugar exporter, in December, citing hygiene concerns at manufacturing facilities.
In January, Thai officials stated that China had requested inspections of several Thai syrup and powder factories before any discussions on lifting the ban could begin.
“Of 42 factories, 35 have temporarily stopped 100% of production because they only export to China. They can’t do anything. They can’t do anything,” said Todsaporn Ruangpattananont of the Thai Sugar Product Association, which represents the 42 sugar factories told Reuters.
“If the issue is not resolved, they most will likely shut down in the long term as they can’t sustain losses,” he further added.
Thailand was China’s top supplier of liquid sugar last year, shipping over 1.2 million metric tons. Since the ban, Thai producers have lost more than 2 billion baht ($60.35 million), including expenses from shipping, port penalties in China, and decreased returns on rejected goods, Todsaporn previously estimated.
Last month, China asked for further inspections, despite Thailand already submitting a list of about 30 FDA-licensed factories in January, according to two Thai officials who spoke on condition of anonymity, reported Reuters. The country has since completed inspections on all roughly 50 factories, confirming compliance with manufacturing standards, the officials said.
