Thailand's Sugar Industry Faces Surplus Risk Amid Indonesia's Self-Sufficiency Policy
Thailand's Trade Policy and Strategy Office (TPSO) has issued a warning to the country's sugar producers about a potential domestic sugar surplus. This concern arises as global sugar supply increases and Indonesia, a major export market for Thailand, moves towards sugar self-sufficiency. Nantapong Chiralerspong, Director-General of TPSO, emphasized the need for the industry to adapt by focusing on value-added processing and shifting towards a bio-economy model. The anticipated increase in Thailand's sugarcane output, projected at 98 million tonnes for the 2025-26 season, coupled with Indonesia's policy shift, necessitates finding new export markets and enhancing bio-energy production. Thailand, the world's second-largest sugar exporter in 2025, heavily relies on Indonesia, which accounted for over 27% of its sugar export earnings. The TPSO suggests expanding into East and Central Asian markets to mitigate the expected decline in Indonesian demand. 
