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Export market
Thai sugar price
| Market year |
Farm price(Baht
per ton) |
|
1991/92
|
336
|
|
1992/93
|
359
|
|
1993/94
|
468
|
|
1994/95
|
435
|
|
1995/96
|
386
|
|
1996/97
|
410
|
|
1997/98
|
507
|
|
1998/99
|
470
|
|
1999/2000
|
446
|
|
2000/01
|
491
|
Source: Office
of Agricultural Economics (OAE)
Farm price of Thai sugarcane has been fluctuated since 1991,
according to the statistic from Office of Agricultural Economics
(OAE). The lowest level of Thai sugarcane price was in 1991/1992,
account with 336 baht per ton as a result of weak demand or
oversupply in the market. Meanwhile the highest-level price
was in 1997/98; 507 baht per kilogram, expected that due to
strong demand during that period. Expect that farm price of
Thai sugarcane in 2001/02 and 2002/03 would be increase if there
is strong demand from both domestic and foreign buyer.
Moreover, there is a report reveal that the government is also
main factor for Thai sugar price. The government directly negotiates
annual sugarcane prices with growers and mills. Its also operates
a credit program under which farmers can borrow an amount a
equivalent to their advance for sugar delivered to mills, at
below-market interest rates.
The Sugar Act of 1984 introduced a revenue-sharing scheme of
growers and mills. Under the scheme, growers receive 70 percent
of the revenue from domestic and export sales of sugar and molasses,
less costs and taxes, and mills earn the remaining 30 percent.
Upon delivery of cane to mills, growers receive an initial payment
calculated on a base price negotiated by the government.
This advance payment is not to be less than 80 percent of the
share expected at the end of the season. If the actual "
season' average-price" is lower than the base price, the
difference is adjusted the following season.
The Sugar Act of 1984 also provides
for a 21-member Cane and Sugar Board composed of nine growers,
seven government, and five mill representatives, which controls
cane production levels, encourages improvement in quality, and
seeks lower production costs to make exports more competitive.
One recent target set by the Board was to limit cane production
to zones within 100 kilometers of a mill to lower transportation
cost.
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