“The price of sugarcane has been low for years, and I had to cut down my farm land from 80 to 40 rai,” Thawatchai says. Concerns about sugarcane’s environmental footprint. “If I were one of those small-scale farmers, I would have quit. Big sugarcane growers are somewhat better off. I want the government to re-evaluate the negative impacts that might occur,” Sataporn says. He had made a profit and had a modest debt. In the past few years, though, a trade dispute with Brazil in the World Trade Organization (WTO) has caused the government to float Thai sugar prices on the world market. “Sugarcane normally will produce a yield of ten tons per rai,” Somkit says. The government has invoked Section 44 to at the local price of sugar, says Industry Minister Uttama Savanayana. The amount is not small. But in the Northeast where nearly half the country’s sugarcane is produced, growers both large and small are struggling to keep their heads above water as sugar prices have plummeted in the world market over the past three years. Like many other farmers in the Northeast, Thawatchai switched from rice to sugarcane the late 1990s and made a good profit off his initial 30 rai of land. When the rain arrived in mid-September, the sugarcane of Thawatchai Sriwiboon grew large and green. Somkit’s family can expect to pay, at the low end, 7,000 baht for inputs per rai. The Thai sugar industry is hit by the twin crises of falling exports and sliding price, according to industry experts. Thailand produced a record 134 million tons of sugarcane last year, but that good fortune “flooded the global market and caused the price to drop.” Her only hope for the present time is to note that the world price of sugar seems to be higher than first predicted. But we have no way out,” Thawatchai says, discouraged. If the [sugar] price goes down even more, farmers will not be able to survive. The Sugar price comparison chart shows that price for Sugar (01 Kg) in Thailand is 56.25 % lower than the same Sugar price in , Venezuela. Maybe he can do that in ten years, he says. THAILAND SUGAR product offers from exporters, manufacturers, suppliers, wholesalers and distributors globally by price, quantity, order, delivery and shipping terms, country - Page 1 1,406 thailand sugar price products are offered for sale by suppliers on Alibaba.com, of which sugar accounts for 8%, sweeteners accounts for 1%. Thailand’s Export Price fob: THB: Raw Sugar data was reported at 9,484.180 THB/1000 kg in Sep 2018. If his farm produces a yield of 500 tons, he’d make 680 a ton plus the 110 baht per ton in subsidies. “The quota system will be phased out once the floating price is effective, but the government has to reserve a buffer stock for one month to serve and secure sugar supply,” Mr. Somchai said. Long-term vision rosier than short-term reality. But as the harvest season closes this year, the farmer in Khon Kaen’s Nong Ruea district has lost any hope in making a profit. It still champions a policy that encourages people to reduce the land they used to grow rice and switch to sugarcane. In a news statement of 17 December 2018, Worawan Chid-aroon tried to clarify the situation on the agency’s website. It is now at a very low $240 USD (about 7,300 baht) a ton. Thailand Sugar Production in 2016 – 2017 – 10,150,000 Metric Tons Thailand Sugar Production in 2015 – 2016 – 09,800,000 Metric Tons In … Chaiwat believes that most sugarcane farmers are at their breaking point. The older two have no interest in farming. “My family has been growing sugarcane for more than 30 years,” he tells The Isaan Record, sitting in the air-conditioned office of the Nam Phong Sugarcane Growers’ Association. Somkit Srinakaew is a 50-year-old farmer from Nam Phong district in Khon Kaen province. World sugar prices peaked in 1980 when sugar was selling at $1,010 USD (about 30,800 baht) per ton. She said the cost valuation on the production of one ton of sugarcane is 1,041 baht. Mr. Somchai Harnhirun, the deputy industry minister, said the ministry will revoke its 70:30 profit-sharing system, in place since 1984, requiring the end of its quota system as domestic prices are floated. Ten more years of trying to pay off debt from a livelihood where it often costs more to produce than to sell what he’s been harvesting. Now I only make 300,000 baht. From 2015 to 2016, the price of sugarcane dropped from 850 baht per ton to 773 baht, causing many farmers to reduce the area of sugarcane growing. sugar exports due to reduced raw sugar demand from the sugar refinery business caused by unattractive margins between raw and refined sugar prices. Sugar Good Taste Pure Sucrose Brown Black Sugar Milk Tea For Bubble Milk Tea Ingredient With 50 rai, he’ll have to pay at least 350,000 baht. Production 1.1 Sugarcane MY2019/20 sugarcane production is forecast to decline to around 127 million metric tons (Figure 1.1.1). “In the first few years, I made 600,000 to 700,000 baht per year. Thailand’s Export Price fob: THB: Raw Sugar data was reported at 9,484.180 THB/1000 kg in Sep 2018. He has needed to supplement income by opening up a chemical fertilizer and herbicides shop. His family’s been growing sugarcane since his father’s time on more than 50 rai of land (eight hectare). According to the Nam Phong Sugarcane Growers’ Association of Khon Kaen province 80 percent of the 8,000 current members complained about the sugarcane price being lower than the input cost. The average input costs at a minimum are 7,000 to 8,000 baht per rai. Sugar imports from Thailand see upswing following ATIGA enforcement. Somkit’s family can expect to pay, at the low end, 7,000 baht for inputs per rai. Although there is little expense in delivering his sugarcane to the mill, the high costs of production kept him from making a profit. ©2020 isaanrecord.com. “World Sugar Expo & Conference 2017” The Great Exhibition for Sugar Industry, Bonsucro Seeks to Push Thailand’s Sugar Industry towards Sustainability, Rise Sugar Industry to overhaul the Sugar System of Thailand, Thailand’s Sugar Industry to Step Ahead without Fear of Shortage, Vietnam to Seek Efficiently Restructure Domestic Sugar Industry, Looking ahead to World Sugar Outlook in 2020-2021. “After a year of work, me and my wife don’t have much money left. But any attempt by the government to fix sugar prices or provide help might violate WTO rules. This records a decrease from the previous number of 9,536.570 THB/1000 kg for Aug 2018. This is partly due, she said, to the government’s policy that encourages farmers to switch growing off-season rice with sugarcane to increase productivity. Without the subsidies, he’d be in the hole for 10,000 baht. “The government forecasts the local price of sugar to fall over the next two weeks as the global sugar price is expected to dip,” Mr Uttama said. “But if the price remains the same as last season, sugarcane farmers will not be able to survive because they’ll lose money.”. Thailand’s Export Price fob: THB: Raw Sugar data is updated monthly, averaging 9,469.270 THB/1000 kg from Jan 1994 to Sep 2018, with 297 observations. With 50 rai, he’ll have to pay at least 350,000 baht. He even leased another 150 rai to expand his farm. Thailand is second only to Brazil in sugar exports. I have to keep fighting.”. Because of Isaan‘s dry climate, farmers plant their sugarcane in September or October and harvest in November or December of the following year after 12-14 months. Sugarcane yields about of ten tons per rai, Sugarcane farmers who work more than 200 rai (32 hectare), “My family has been growing sugarcane for more than 30 years,” he tells, If the fates of both large and small scale farms are now tied to a low world market price of sugar, it doesn’t seem as if the government has noticed. Sugarcane farmers who work more than 200 rai (32 hectare) make up only thirteen percent of all growers in the Northeast.