2023-09-08 13:17:08
Thailand’s sugar production will fall by almost a fifth in the next harvest season due to severe drought, according to the country’s main industry association, which will further hurt the global food market.
Rangsit Hyangrat, director of the largest Thai sugar production company, Thai Sugar Millers, said that sugar production in the country will decrease by regarding a fifth in the next harvest season due to drought, which may put more pressure on the global market.
He pointed out that production will decrease by 18 percent to reach regarding 9 million tons in the 2023-2024 season, as the intensity of extreme heat and drought is likely to increase in the coming years, which may prompt some farmers to grow cassava “in the hope that the crop will withstand the heat.” Better.
It is worth noting that Thailand is the second largest exporter of sugar in the world, following Brazil, so the decrease in production will put more pressure on the global market.
Prices jumped to their highest level in 11 years this week following Alfian, the world’s largest trader of this commodity, predicted another year of shortages. Extreme heat in India is also contributing to the sugar crisis, highlighting how climate change is impacting global food markets.
Rangsit expects the country’s sugar exports to decline to 6 million tons next year from 8 million tons this year.
Overseas sales in the first seven months of 2023 rose by 2.4 percent, compared to the same period of the previous year, according to the Thai Ministry of Commerce.
Sugarcane production is expected to fall to 82 million tons in 2023-24 from 93.9 million tons this season due to water shortages in key production areas, Rangsit said.
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