Thailand’s sugar output is forecasted to rise significantly in the 2024-25 crop year, supported by increased rainfall, according to the Office of the Cane and Sugar Board (OCSB). However, stricter enforcement of burning checks during harvest aims to mitigate PM2.5 air pollution, a persistent seasonal issue linked to the practice.
The government recently intensified its monitoring efforts after a sugar mill in Udon Thani was temporarily shut down for exceeding limits on purchasing burned sugar cane. This measure is part of broader efforts to reduce the environmental impact of farming practices, which contribute to ultra-fine particulate pollution.
For the 2024-25 season, sugar cane production is expected to reach 90 million tonnes, resulting in an estimated 11 million tonnes of sugar. This marks an increase from the 83 million tonnes of cane and 9 million tonnes of sugar recorded in the drought-affected 2023-24 season. “Improved rainfall has enhanced soil conditions, making it more suitable for farming,” said Samart Noirun, deputy secretary-general of the OCSB.
Despite higher yields, global sugar prices have fallen, dropping from 22 cents per pound in 2024 to 17 cents as of January 22, 2025, per OCSB data. Analysts attribute the decline to increased sugar supplies from India and Australia, where crushing seasons are either underway or imminent.
Domestically, the Industry Ministry is focusing on reducing the prevalence of burned sugar cane, which currently accounts for 17.8% of the total harvest. Burning is a common practice due to its lower labor requirements but worsens air quality, especially during Thailand’s cool season. The practice has also raised concerns internationally, potentially affecting the competitiveness of Thai sugar exports.
As part of its strategy to address climate concerns, the OCSB is evaluating the implementation of a carbon tax on sugar manufacturers to discourage the purchase of burned cane. This initiative aligns with Thailand’s forthcoming climate change legislation, slated for enforcement later this year.
The sugar mills in Thailand have been under state inspections since December to ensure compliance with harvesting standards. Officials have noted that burned cane harvesting is particularly prevalent in provinces like Udon Thani and Khon Kaen.
The Industry Ministry’s focus on sustainable practices reflects growing global scrutiny of carbon emissions, with stakeholders increasingly demanding greener supply chains. In attendance during recent policy discussions were industry representatives and local officials, underscoring the government’s commitment to addressing the dual challenges of environmental protection and agricultural productivity.
