Rangsit Heangrat, director of Thailand’s largest sugar producer, Thai Sugar Millers, said that sugar production in the country will drop by about a fifth in the next harvest season due to drought, which could put more pressure on the global market.
He pointed out that production will decrease by 18 percent to reach about 9 million tons in the 2023-2024 season, as it is likely that severe heat and drought will increase in the coming years, which may prompt some farmers to plant 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, after Brazil, so lower production will put more pressure on the global market.
Prices jumped to an 11-year high this week after Alvian, the world’s largest trader of the commodity, predicted another year of shortages. The extreme heat in India is also contributing to the sugar crisis, highlighting how climate change is affecting global food markets.
Rangsit expects the country’s sugar exports to fall to 6 million tons next year from 8 million tons this year.
Overseas sales in the first seven months of 2023 rose 2.4 percent, compared to the same period a year earlier, according to the Thai Ministry of Commerce.
Rangsit said sugarcane production is expected to drop to 82 million tons in 2023-2024 from 93.9 million tons this season due to water shortages in major producing areas.
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