Thailand’s sugar production is likely to fall 28% year-on-year in 2019/20 to a nine-year low of 10.5 million tonnes as drought curtails cane supplies, the head of a leading trade body told Reuters on Friday.
The lower production will limit exports from the world’s second-biggest exporter and support global prices which are trading near their highest level in 2-1/2 years.
Thailand could export between 6 and 7 million tonnes of sugar in the current year, down from 11 million a year ago, Rangsit Hiangrat, director general at Thai Sugar Millers Corp., said.
“Drought has badly affected cane plantations. It will have a negative impact on production this year and next year,” he said.