The country’s sugar output will drop by almost a fifth in the upcoming harvest due to a severe drought which will lead to further tightening in the global market, according to Thai Sugar Millers Corp.
Production will fall by 18% to around 9 million tonnes in the 2023-24 season, said Rangsit Hiangrat, director of the industry group. Extreme heat and dryness will probably become worse in the coming years, he said on Thursday.
“Some farmers may switch to planting cassava” in the hope the crop will better withstand the heat, Mr Rangsit said. “With this kind of drought, I doubt that any crop will grow well. Sugar cane, cassava or rice will all suffer.”
Thailand is the world’s second-largest sugar exporter, so a drop in production will put even more pressure on the global market. Prices jumped to an 11-year high this week after Alvean, the world’s largest trader of the commodity, forecast another year of shortages.
Extreme heat in India is also contributing to the sugar crunch, highlighting how climate change is affecting global food markets.
Mr Rangsit forecasts that the country’s sugar exports will drop to 6 million tonnes next year from 8 million tonnes this year. Overseas sales in the first seven months of 2023 are up 2.4% from the year-earlier period, according to the Ministry of Commerce.
Sugar cane production is expected to drop to 82 million tonnes in 2023-24 from 93.9 million tonnes this season due to water shortages in key production areas, Mr Rangsit said.
