Bangkokpost.com; Published 30/03/2009 at 08:08 PM
Thailand may produce at least 3.8% less sugar this year because of drought has cut cane output, a government official said on Monday. Production may fall below 7.5 million tonnes from 7.8 million tonnes last year, said the official in charge of output planning. He said a serious impact in some areas from drought could continue into next year.
A drop in supply from Thailand may help offset increased production from Brazil and support prices, which tumbled 6.8% last week.
Thikha Khunnawat, director general of Thai Sugar Millers Corp, said many mills have already ended crushing. Sugarcane is also facing competition from other crops like cassava.