The hot season and recovery of the tourism sector are increasing demand for sugar as people buy more food and beverages.
Thai sugar consumption in 2023 is expected to grow as the country welcomes more foreign tourist arrivals, possibly reaching 25-30 million, said Boontin Kotesiri, adviser to the state-run Thai Cane and Sugar Corporation (TCSC).
The number of foreign visitors has continued to increase since the full reopening of the country in July last year as Covid-19 infections eased.
Beijing's decision to reopen its borders from Jan 8 this year will also bolster tourism's recovery and related businesses in Thailand.
"Around 2.5 million tonnes of sugar are available to serve the domestic market in the 2022-23 crop year, a slight increase from 2.4 million tonnes in the last crop year," said Mr Boontin.
"We are not worried about a sugar shortage though sugar cane output dropped in the current crop year."
The sugar cane output is lower than forecast for this crop year, with an increase of just 1.9% to 93.8 million tonnes due to drought and more farmers switching to cultivating cassava, according to the Office of the Cane and Sugar Board.
The high cost of sugar cane farming was also blamed for the output not reaching expectations, while other farmers decided to grow cassava instead due to this crop attracting higher prices.
All the sugar cane, with a commercial cane sugar sweetness level of 13.3, was supplied to 57 sugar factories nationwide between Dec 1 and April 6 for crushing.
The TCSC, established under the Industry Ministry, oversees the export of sugar by preventing price collusion among sugar manufacturers who may jointly keep raw sugar at low prices.
The export prices are among factors used to calculate sugar cane prices. Sugar factories may cite low export prices in order to reduce sugar cane prices.
The prices of sugar cane in Thailand are determined by a tripartite committee, consisting of representatives from sugar cane farmers, sugar manufacturers and government officials. The cabinet has the final say on sugar cane prices.
