The sugar production in Thailand has been affected as the country is facing drought, which is one of the severe in the last 40 years.
Analyst Green Pool cut its forecast for Thai sugar production this year to 9.55 million tonnes, sharply down from last season’s 14.57 million tonnes.
Sirivuthi Siamphakdee, vice-chairman of Thai Sugar Millers Corp said, “We are passing through the worst phase and this will likely be our worst season in five years.”
Thailand’s agro-economy thrives on crops like sugar, rice and rubber and the long period of dryness have affected the crops.
This season, India too affected by the monsoon. Flood and drought in Maharashtra and Karnataka have impacted the sugar production in India in the ongoing season. According to the sugar industry experts, due to good monsoon, the country’s sugar output is set to bounce back next season.
The falling production of sugar in India and Thailand have resulted in a hike in global sugar prices.
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