According to the Federation of Thai Industries (FTI), a recent announcement about a price increase for raw sugar to 4 baht per kilogram has been met with minimal concern from the Thai food and beverage industry.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), stated that as of now, there have not been any reports on adverse impacts on the food and beverage industry. Kriengkrai explained that sugar prices are governed by global market forces and that Thailand must also consider the impact of global issues like climate change, which has led some countries to cease agricultural exports. He gave an example of India stopping rice exports, thereby increasing global rice prices. It is a trend that has been beneficial for Thailand’s export figures in the past two months.
Regarding raw sugar, climate change has caused a production drop in various countries, leading to consecutive price increases in the global market. This has had a positive effect on sugar exporters and cane farmers within Thailand.
For consumers, a slight impact might be felt, but it is believed to be minimal as sugar consumption has generally decreased due to growing health awareness. Likewise, the industry may experience some repercussions due to increased costs, but this is considered to be minimal.
The FTI Chairman also noted that current trends show that people, particularly the younger generation, are consuming less sugar. Moreover, sugar is not the only sweetening agent available, so the rise in raw sugar prices is not viewed as a major issue for the food industry. (NNT)