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Significant Sugar Losses Reported

06 July 2010

THAILAND –A prolonged dry spell in Thailand has dealt a second blow to the country's sugar production, which could potentially see a drop this season of more than one million tonnes.

According to Agrimoney.com, the decline follows unfavourable growing conditions in key cane-growing areas in June, with the full extent of the damage remaining dependent on whether rains arrive, as expected, next month.

Andy Duff, an analyst from Rabobank, told the website that "industry sources" had predicted a fall of ten to 15 per cent in 2010-11, from last year's output of 6.9 million tonnes.

He said: "Eyewitness accounts suggest the impact of the dry weather to date has been significant."

Mr Duff added that the damage would represent a second setback for Thailand's sugar, of which it is currently being ordered to buy back 100,000 tonnes from merchants to meet local shortages.

Meanwhile, it was revealed last month that production of rice in Thailand, the world's largest exporter, could plunge to its lowest level in eight years.

TheCropSite News Desk

Market Reports, Environmental, Sugar (Cane & Beet)

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