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Thailand's Sugar Production Likely to Increase

25 April 2012
USDA Foreign Agricultural Service

THAILAND - Sugar production will likely increase to 10-11 million tons in MY2011/12 and MY2012/13 in anticipation of a bumper sugarcane crop of 100 - 105 million tons due to acreage expansion driven by a government support programme and attractive market returns.

Sugar mills are expected to increase from the existing 47 mills with a milling capacity of 0.9 million tons of cane/day to 51 mills with a capacity of approximately 1.0 million tons/day in MY2012/13.

Consequently, sugar exports are forecast to increase to 9.0 million tons in MY2011/12, and continue the upward trend to 9.3 million tons in MY2012/13 as three new mills start operating.

Domestic sugar consumption will likely increase around 8.0 per cent to 2.6 and 2.8 million tons in MY2011/12 and MY2012/13, respectively, in anticipation of domestic economic recovery from the flood damage in 2011.

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