It is reported by finimize.

Thailand, the world’s second-largest sugar exporter, is set to ramp up its production as farmers pivot away from cassava. With cassava prices tumbling 37%, many are reverting to sugar cane cultivation. Mitr Phol Group anticipates cane production to jump to 105 million tonnes from the current 92 million, while sugar output could climb to 11.5 million tonnes. This export-centric push is facilitated by Thailand’s modest local sugar consumption, which remains around 2.5 to 3.0 million tonnes. Industry analysts like Marex and Green Pool foresee a continuing expansion in cane planting areas for the upcoming seasons, predicting a potential sugar production high of 13.2 million tonnes by 2025/26, assuming favorable weather and yield improvements.

Thailand's increase in sugar production could mean more supply in global markets, potentially driving down prices. This surplus offers importing countries a chance to secure sugar at reduced costs, and could prompt price competition among exporters like Brazil and India. Investors might want to watch for shifts in commodity markets and sugar-related stocks as Thailand’s production expands.

This pivot back to sugar cane underscores the cyclical nature of agricultural commodities influenced by price fluctuations and climate conditions. Thailand's adaptive strategy could serve as a model for other nations facing similar agricultural dilemmas. Observers might consider how this adaptability impacts long-term agricultural planning and food security strategies globally, especially as climate patterns continue to evolve.