Sugar producers in Thailand have issued a stern warning to the government, urging it to refrain from violating the World Trade Organization’s (WTO) regulations governing fair competition in the sugar trade, reported Bangkok Post.
This caution comes in response to the government’s contentious decision to block an sugar price increase within the domestic market.
The move by the Thai government has prompted sugarcane farmers to request a meeting with the commerce minister, to express their concerns. According to the media report, sugar factory operator noted that the possibility of smuggling sugar to other countries with more lucrative price levels looms large.
Last week, the cabinet granted its approval for the regulation of sugar prices as part of an effort to ease the financial burden on consumers.
As per media report, sugar producers on the condition of anonymity claim that the cabinet’s decision to block the sugar price increase may be viewed as an attempt to interfere with market dynamics through price controls. This, in turn, could lead to an upsurge in illegal sugar trade along Thailand’s borders, where sugar prices are more lucrative.
