Thai drought could drive up global sugar prices
By Petchanet Pratruangkrai, The Nation
8 May 2012 Drought could result in a loss of 20 million to 30 million tonnes of sugar-cane output next year if the rainy season is not well underway by July and August, warned the Thailand Society of Sugar Cane Technologists. If that happens, the global price of sugar could increase next year, as Thailand is one of the world’s three largest suppliers of the commodity. Kitti Choonhawong, president of the organisation, said that if drought does not seriously affect cane production, output should reach 100 million tonnes during the 2012-13 harvest season. However, as 50 provinces are currently experiencing drought, output could be down by 20 million to 30 million tonnes, as sugar cane favours high humidity and rainfall, he explained. He said sugar-production areas in the Central region should be closely monitored in particular, since farmers will start to plant cane in July and August. If rainfall is much lower than normal, 2012-13 sugar-cane production could drop to its lowest record in three years. […]
