Thailand, the world’s second biggest sugar exporter plans to increase its acreage dedicated to sugarcane by 128,000 hectares and increase sugar output by as much as 10%. This increase in output by Thailand will put even stronger downward pressure on global sugar prices which are at seven-month lows because of global oversupply. Thailand’s Office of Cane and Sugar Board (OCSB) estimates that the increase will add between 800,000 to 1 million tons of sugar per year – estimates for 2014 production stand at 10 million tons. After a record 11.3 million tons of sugar produced in the 2013/14 season, Thailand is left holding millions of tons of unshipped sugar and sellers are being forced to sell at prices below New York futures. Thailand’s military-run government appears to be using the plan which is set to be approved by the end of this year, to gain favor from the country’s large rural population.
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