The ministry has opted for quota management for a short-term solution rather than considering a proposal on a floating price policy to solve problems in the long run.

It yesterday ordered additional supplies of 400,000 sacks of sugar per week.

The extra supply will enter the market in the next few weeks. So far, the government has allocated 380,000 sacks for the domestic market, and the latest quota management will therefore increase supplies to 780,000 sacks per week.

The ministry yesterday completed a three-day meeting to discuss solutions to the sugar shortage. The meeting decided to double the supply of sugar for the domestic market for a few weeks in order to meet the market's high demand in the short term.

Deputy Commerce Minister Preecha Laohapongchana said this would convince consumers of the adequacy of sugar supplies. After the shortage is resolved, the ministry will go back to its original quota management. The ministry has to borrow 800,000 to 1,200,000 sacks of sugar, prepared for supplying the market late this year, in order to solve the shortage problem now.

"The country's sugar supplies are expected to increase from 42 million to 46 million sacks this year, but the additional sugar stocks will not affect future consumption," Preecha said. Caretaker Deputy Prime Minister and Commerce Minister Somkid Jatusripitak acknowledged that the problem was quite complicated.

However, he expressed confidence that sugar smuggling and shortages would soon be solved as a result of the ministry's stringent controls.

He said the ministry's cooperation with the Customs Department, sugar millers and traders would relieve the shortage problem.

Yesterday's meeting was Somkid's first task since being hospitalised last week with a heart problem.

The Customs Department will also set up a special task force to tackle the problem of illegal exports of sugar in border provinces.

The ministry reported that most of the smuggled exports were to Cambodia.

Petchanet Pratruangkrai

The Nation