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Published on November 2, 2007

However, the board needs to find other ways to subsidise farmers and sugar mills as production costs are rising to over Bt800 per tonne.

Based on production of sugar cane of 63 million tonnes and the gap of Bt200 per tonne, it must compensate farmers by around Bt14 billion with a further Bt6 billion for factories.

Industry Ministry deputy permanent-secretary Direk Sukotanang said the board also discussed measures to subsidise farmers and factories for their rising costs caused by oil prices and the baht's strength.

"The calculation of the primary price cannot be changed, but we will try our best to reduce their costs," he said.

Meanwhile, the board will propose the primary price and the measures to Deputy Prime Minister and Industry Minister Kosit Panpiemras today. The board's secretary-general Ratanaporn Chuengsanguansit will also soon meet with the Finance Ministry over the subsidy.

Direk said it would try to urge the Energy Ministry to be clearer about its policy to promote the country's ethanol production because that would dramatically increase demand and the sugar-cane price. The board would also focus on productivity.

Chalida Ekvitthayavechnukul

 The Nation