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Thailand to introduce new sugar management system

Thailand, the world's second biggest sugar exporter, will apply a new management system for sugar production and distribution in the 2017-18 crop, which will begin in November.
Thailand to introduce new sugar management system ảnh 1Illustrative photo (Source: VNA)

Bangkok (VNA) -
Thailand,the world's second biggest sugar exporter, will apply a new management systemfor sugar production and distribution in the 2017-18 crop, which will begin inNovember.

The move is to better followingregulations set by the World Trade Organisation (WTO), of which the country isa member since 1995.

According to SomsakJantararoungtong, Secretary-General of Thailand’s Office of Cane and SugarBoard (OCSB), said related parties, including millers, farmers and thegovernment, agreed on the new system.

It has been designed to governThailand's sugar industry in order to secure domestic sugar supply with therepeal of the quota system after more than three decades.

Legislative process is nowunderway, he said, adding the expectation for new regulations to be imposed byNovember.

However, experts said the newsystem might create additional risks for Thai sugar millers.

Previously, Thailand agreed withthe WTO to revoke its quota system, known as Quota A, for 2.2-2.5 milliontonnes a year to secure sugar supply at home, after it was challenged byBrazil, the world's biggest sugar exporter.

Brazil said Thailand's subsidies for sugar producers had dragged down global prices and allowed the country towin a larger market share at the expense of Brazilian producers, which is notin line with international trade agreements.-VNA
VNA

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