Although the Cabinet recently approved increasing the retail price of sugar by Bt3.25 per kilogram, the move has not solved the shortage.

Preecha Laohapongchana, deputy commerce minister, said the measures for addressing the sugar shortage would be announced in the next two weeks.

One of the measures the ministry is considering would require sugar millers and traders to report every sugar transaction to the ministry. In addition, they would have to inform the government when their stockpiles exceed 10,000 kilogrammes.

The ministry yesterday met with representatives from sugarcane farmers and sugar millers, in an effort to learn why the shortage persists. The domestic sugar price is Bt17.50 per kilogramme, compared to more than Bt30 internationally.

The ministry will also ask for more cooperation from the Customs Department to tackle sugar smuggling and ask the Revenue Department to check value-added tax payments made by sugar traders.

One problem leading to shortages is that manufacturers are exporting "quota A" sugar, which is reserved for domestic consumption, instead of "quota C" sugar, which is earmarked for export, the ministry has learned.

These manufacturers prefer quota A sugar, the price of which is Bt10 lower than quota C. The price of the export variety is based on the world market price.

Petchanet Pratruangkrai

The Nation