The company, a representative of all the country's 46 sugar millers, yesterday visited the Commerce Ministry's Trade Negotiations Department to speak out against India's policy.

The representative asked Chutima Bunyapraphasara, director-general of the department, to hold talks with Indian officials with a view to getting the export subsidy withdrawn.

In April, India announced that every tonne of sugar exported would have a subsidy of US$32 (Bt1,108) to $35 to support transportation costs. As a result, world prices immediately dropped from $350-360 per tonne to the current level of $330-340.

Prakit forecast that global prices would drop by an average of $20-25 per tonne after India implemented its subsidy programme.

India's subsidy policy has directly hit major sugar-exporting countries, including Brazil, Thailand and Australia.

Prakit also asked the department to consider whether the subsidy has breached World Trade Organisation rules.

The company also called on the government to help negotiate with the Russian government to maintain its sugar import tariff at $140 per tonne.

Some sugar millers in Russia have urged their government to double the tariff to $280, arguing that the measure would shield domestic farmers and millers. Moscow has not yet decided the final rate.

The Commerce Ministry plans to raise the issue during the visit to Russia of Commerce Minister Krirk-krai Jirapaet next month.

"Thai sugar exporters are optimistic that Russia will not double its import tariff, otherwise [Russian] consumers will have to bear higher costs," Prakit said.

Thailand is the fourth-largest sugar exporter to Russia, with volume reaching 37,327 tonnes, up by 1.15 per cent, last year. The biggest supplier to Russia is Brazil, with 2.3 million tonnes last year, followed by Cuba and El Salvador.

Petchanet Pratruangkrai The Nation