"We're ready to allow [makers of] sugar-consuming products to raise their prices, but not at rates that would greatly affect consumers," he said, adding that the ministry would base its decision on manufacturers' production costs.

The sugar committee has been pushing for a retail sugar price increase for some time to reduce shortages induced by the yawning gap between local and overseas sugar prices. There have been reports of sugar hoarding ahead of the anticipated price increase.

Tan Passakornnatee, chief executive of beverage-maker and restaurateur Oishi Group Plc, said that the sugar price increase would greatly affect related industries, particularly canned and bottled beverages, which often use large quantities of sugar.

"We would raise wholesale prices to minimise the impact on consumers," he said.

The sugar price increase is part of the national agenda to restructure the sugar industry. The Cabinet last week delayed the decision on the proposed restructuring, saying that the next government, not an interim administration should consider the plan.

Petchanet Pratruangkrai The Nation