Thailand is expecting another year of high sugar production, following a 17.6% increase in output during the last season, helped by strong sugarcane prices and favourable rainfall, reported Reuters..
The country, which is the world’s second-largest sugar exporter after Brazil, produces far more than it consumes. While domestic use stands at around 2.5 million tonnes annually, the rest is exported.
Production in the 2024/25 season reached 10.03 million metric tonnes, up from 8.8 million tonnes the previous year. The previous season had seen a significant decline of over 20%. The latest season wrapped up in April.
“We’re seeing growth in production, even though sugar prices have been lower,” said Thawat Hamarn, head of strategy and planning at the Office of the Cane and Sugar Board. “It’s mainly due to better rainfall and good cane prices.”
Looking ahead, Thailand expects to produce 10.05 million tonnes of sugar in the 2025/26 season. However, the forecast will be reviewed in September after the rainy season.
Meanwhile, global sugar prices have dipped. Raw sugar futures on the ICE exchange dropped to a four-year low this week, partly because early monsoon rains have boosted crop conditions in major producers including India, Thailand, and China. Brazil, the top global producer, has also begun harvesting.
Thailand’s sugarcane planting area is expanding. For the upcoming 2025/26 season, the planting area stands at 10.5 million rai (1.68 million hectares), up from 9.7 million rai the previous year—an increase of just over 8%, Thawat added.
