BANGKOK (The Nation/Asia News Network): The Cabinet rejected plans to boost the price of sugar by 4 baht per kilo and instead agreed to add it to the list of controlled commodities.
After the weekly Cabinet meeting on Tuesday (Oct 31), Prime Minister Srettha Thavisin told reporters that the Cabinet decided to approve the Commerce Ministry’s proposal to add sugar to the list of controlled goods under the 1999 Prices of Goods and Services Act.
The PM said the Cabinet resolution will go into effect once it is published in the Royal Gazette, which should be on Wednesday.
The Commerce Ministry sought the Cabinet’s approval after the Central Committee on the Prices of Goods and Services, chaired by Commerce Minister Phumtham Wechayachai, agreed to regulate sugar prices to alleviate the impact on consumers.
The committee took this action in response to the Cane and Sugar Board’s announcement on Friday, that it would allow ex-factory sugar prices to be raised by 4 baht per kilogram.
This announcement prompted sugar to disappear from grocery shelves as shops hoped to sell the product at higher prices.
As per the Commerce Ministry and central committee on prices, the ex-factory prices of granulated sugar and refined sugar will be retained at 19 baht and 20 baht per kilo respectively.
The retail price of granulated sugar and refined sugar will also remain unchanged at 24 baht and 25 baht per kilogram, respectively.
After his committee reached its decision, Phumtham said on Monday that it was necessary to alleviate the burden on the public.
He said sugar is used in several products, such as canned foods, drinks and desserts, and if the price was raised, it would have an impact on the public.
Phumtham added that from now on, the price of sugar will be controlled by the central prices committee and the announcement of the sugar board would no longer be effective.
Apart from leaving the price of sugar unchanged, the central prices committee will also control the export of the commodity. Those wanting to export more than a tonne of sugar will be required to first get the approval of a subcommittee of the central prices committee.
Phumtham said the rejection of the sugar board’s decision will have no impact on sugarcane farmers as they will continue receiving subsidies from the government.
