Bangkok: Thailand, the world’s third-largest sugar producer, faces a potential shortfall in sugar production for the current season due to adverse dry weather conditions impacting the growth of sugarcane.
Rangsit Hiangrat, Director of the Thai Sugar Millers Corp, has predicted a subdued output for the 2023-2024 crop season, estimating it to reach only 7.5 million tonnes. This projection is notably lower than the firm’s initial forecast in November 2023 by 500,000 tonnes.
As outlined in a news report by the Bangkok Post, the tighter supply outlook and reduced output from Thailand have contributed to last month’s significant surge in raw sugar futures, marking the most substantial monthly gain since April.
The Office of the Cane and Sugar Board reports that Thai millers have produced 4.9 million tonnes of sugar from around 49.57 million tonnes of crushed cane since the season commenced. This has resulted in a sugar recovery rate of about 9.9% as of February 1, a decline from the 11.8% recorded in the previous season.
