Thailand to overhaul sugar policy
Thailand, the world’s second largest sugar exporter after Brazil, is to overhaul its sugar production and distribution systems for the first time in more than three decades in order to avoid being challenged by Brazil at the World Trade Organization. The move is unlikely to make any changes on the global sugar trade for at least in the next few years, government and industry officials said. According to the Office of Cane and Sugar Board, Thailand will have to revoke its current 70:30 profit-sharing system, in place since 1984, which will require cancelling its quota system and floating domestic sugar prices. “The OCSB has finalised the plan to overhaul the sugar system and will submit the plan for cabinet approval within a few weeks,” said the OCSB’s secretary-general Somsak Jantararoungtong.
