THAILAND: PM turns down request for higher cane prices
Published: 07/02/2009, 8:11:16 AM
Thailand's Prime Minister Abhisit Vejjajiva yesterday turned down a request by the Federation of Thai Industries to cut the sugar price, according to Thailand's The Nation newspaper.
Abhisit said the price should remain high until the Cane and Sugar Fund had repaid its debt to the Bank of Agriculture and Agricultural Cooperatives (BAAC) in full.
Ever since then-industry minister Suwit Khunkitti announced a THB5 (US$0.14)-a-kilogram increase in the sugar price last year, the FTI has been calling on the government to lower the price THB2 to THB3 a kilogram, because the higher cost had resulted in manufacturers of drinks and dairy products losing their competitiveness.
However, Abhisit said he would like to place priority on stabilising the Cane and Sugar Fund, which would help support |the cane and sugar industry in the long term.
"I think both consumers and manufacturers have managed to adapt, so it should not be a problem to maintain the present price," he said, adding that he had no plans to raise the sugar price any higher.