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Domestic market
Thai sugar production
Thailand is the world's sixth
largest sugar producer and the twelfth largest consumer. Thai
sugar production in 1999/2000 was a record 5.72 million tons,
an increase of 6 percent from the previous year. Domestic
consumption was 1.6 million tons, a decrease of about 8.3
percent from 1.8 million tons in the previous year, leaving
plenty of room for sugar exports. In fact, Thailand does not
import sugar, but exports about 3.3-4.3 million tons per year,
making it the world's fourth largest exporter.
In the 2001/02 marketing year, Thai sugar production is estimated
to have hit a record 6.3 million tons, up about 23.5 percent
from 5.1 million tons in the previous year, because ratoon
cane and new planting cane planted in Oct-Dec 2000 benefited
from good rainfall in early 2001. Rainfall in most major cane
areas in the northeast was reported at above optimum levels
for cane growing and caused some flooding but did not damage
the crop. Total sugar supply is estimated at 6.3 million tons,
up by about 1.2 million tons from the previous year, because
of increased production despite lower beginning stocks and
increased domestic consumption.
Table Total Thai sugar production during 1998-2003
|
Year
|
Beginning
stocks
|
Production
|
Total supply
|
Exports
|
|
1,000 tons
raw value
|
|
1998/99
|
450
|
5,386
|
5,836
|
3,352
|
|
1999/00
|
684
|
5,721
|
6,405
|
4,147
|
|
2000/01
|
608
|
5,107
|
5,715
|
3,394
|
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2001/02
|
571
|
6,355
|
6,926
|
4,300
|
|
2002/03
|
776
|
6,000
|
6,776
|
3,800
|
Source: USDA
According to the USDA, Thai sugar production is projected to
grow 22 percent between1994/95 and 2003/04, mainly due to the
continued expansion of planted areas. Poor weather and insect
problems have hindered cane yields in previous years, leaving
ample opportunity for yield growth. Area growth is also being
spurred by incentives to switch from upland rice to sugarcane
in the lower northeast. Despite steady growth in domestic sugar
demand, exportable surplus is projected at nearly 4 million
tons in 2003/04. Moreover, regarding the 5-year strategic plan
(2004/08) for the sugar industry, developed recently to strengthen
industrial competitiveness, the production target aims to improve
cane yield from the current 60 tons per hectare to 88 tons per
hectare.
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