Thailand: Sugar Annual

Post forecasts that Thailand's sugar sector will face substantial headwinds in MY 2026/27 as cultivation costs will rise, while domestic and export markets remain subdued. Some smallholder sugarcane farmers, particularly in the northeast, may shift to alternative crops in MY 2026/27. Thailand's continuing sugar tax on beverage reformulation and household use will keep domestic sugar consumption stable. Thai sugar traders report an increase in demand from their overseas customers in MY2025/26 though Post forecasts a return to more typical sugar export levels in MY 2026/27.