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Published on April 29, 2008

The Nation

Deputy Prime Minister and Industry Minister Suwit Khunkitti said the national agenda will include using geographic IT in locating plantation areas and sugar mills to reduce logistics costs, developing related industries such as ethanol and value-added products.

"We will ask sugar cane prices be raised for the 2007/2008 harvest by Bt107 to Bt807 per tonne, to cover higher production costs," he said.

A source from the ministry said Suwit plans to ask the Cabinet to approve raising the ex-factory sugar price by Bt5 a kilo, to Bt19, to relieve the Sugar Cane and Sugar Fund's Bt25-billion debt.

"The increase will be in line with other crops. Today, sugar cane growers have to shoulder higher costs due to higher fertiliser costs and oil prices," the source said.

If the ex-factory price is raised, sugar will be sold for a retail price of Bt21-Bt22 per kilo.

This will add pressure to already hard-hit consumers but the price remains lower than Bt35-Bt40 per kilo in neighbouring countries, the source added.

Rachai Choosilkul, secretary-general of the Federation of Thai Sugarcane Planters and a director of the Sugar Cane and Sugar Board, said the board had approved the price increase for domestic consumption.

This will raise revenue by Bt5 billion and proceeds could be used to repay a part of its Bt25 billion debts.