Sugar

Production of about 10 million tonnes of sugar, a figure significantly lower than the previous year. In addition, sugar production for the period 2024/25 is expected to increase to 10.2 million tonnes

Sugar production is a significant agricultural sector in Thailand, positioning the country as one of the world’s top sugar producers and exporters. Here are some key points about sugar production in Thailand:

1. Overview of Sugar Production

  • Ranking: Thailand is the second-largest sugar producer in Asia, after India, and is among the top ten producers globally.

  • Crops: The primary raw material for sugar production is sugarcane, although sugar beet is also grown in smaller amounts.

2. Cultivation Regions

  • Major Areas: Sugarcane is mostly cultivated in the central and northeastern regions of Thailand, particularly in provinces like Suphan Buri, Kanchanaburi, and Nakhon Sawan.

  • Agricultural Practices: Many farmers use both traditional and modern agricultural practices. The main crop is typically harvested during the dry season, usually from November to April.

3. Processing and Production

  • Sugar Mills: Thailand has numerous sugar mills located close to sugarcane farms, which helps optimize the processing time from harvest to production.

  • Types of Sugar: The country produces different types of sugar, including raw sugar, refined sugar, and specialty sugars.

4. Market and Economy

  • Export: A significant portion of Thai sugar is exported. The country is a major exporter to markets in Asia, particularly to countries like China and Indonesia.

  • Domestic Consumption: Sugar is a staple in the Thai diet and is widely used in cooking and food production, including beverages and snacks.

5. Regulatory Environment

  • Government Policies: The Thai government supports the sugar industry through various policies, including price supports and investment in agricultural technology.

  • Sustainability Initiatives: There is a growing emphasis on sustainable practices in sugarcane farming and processing to mitigate environmental impacts, including issues related to water use and land degradation.

6. Challenges

  • Environmental Concerns: Sugarcane cultivation can lead to deforestation, soil erosion, and water management issues. The industry faces pressure to adopt sustainable practices.

  • Price Volatility: Global sugar prices fluctuate, impacting producer incomes and the stability of the sugar sector.

7. Future Outlook

  • Sustainable Practices: There is a push for increasing sustainability through initiatives like the Sustainable Sugarcane Initiative (SSI) to promote responsible farming and eco-friendly practices.

  • Market Trends: With the rising global demand for natural sweeteners and healthier products, the Thai sugar industry may explore diversification into biofuels and value-added products.

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