1 mn sugar sacks distributed to ease shortage this week

BANGKOK, 21 March 2010 (NNT) – The Ministry of Commerce will this week start distributing one million sacks of sugar into the market to ease shortage and rising sugar price in the country.

According to Permanent Secretary for Commerce, Yanyong Puangrach, about 70% of the sugar will be allotted to middle agents for sale to retail shops. Another 15% of the quota will be allocated for food and dessert producers while the remaining 15% will be for household consumption.

Mr Yanyong stressed that only manufacturers of food and desserts for domestic markets would be eligible for the sugar allocations. He said those manufacturing for exports must use another quota reserved for exporters only.

In the metropolitan area the compulsory price of sugar is 23.50 THB per kilogram, but in the provinces prices will vary according to the transportation cost. More sugar sacks will be sent to those provinces with severe shortages such as Nakhon Pathom, Ratchaburi, and other big provinces.

The Permanent Secretary expected that it would take approximately one to two months for the situation to ease up. Export prices of sugar have recently fallen from about 690-700 USD per ton to 400 USD per ton.

Due to the sugar shortage, sugar prices in some provinces almost touch 30 THB per kilogram while the lowest price is around 22-24 THB per kilogram.