The share price of stocks related to sugar businesses in the Thai stock market continued to accelerate in the morning session on May 26, 2022, following positive trends of higher exports from Thailand after India had limited its sugar exports to maintain domestic availability of sugar and safeguard interests of consumers by keeping prices under control.
At the closing of the morning session on May 26, 2022, the share price of Buriram Sugar Public Company Limited (SET: BRR) rose 4.07% to THB6.40 per share. Khon Kaen Sugar Industry Public Company Limited (SET: KSL) increased 3.68% to THB3.94 per share. Kaset Thai International Sugar Corporation Public Company Limited (SET: KTIS) gained 0.82% to THB4.94 per share, and Khonburi Sugar Public Company Limited (SET: KBS) advanced 3.18% to THB4.54 per share.
The Indian government will cap sugar exports at 10 million tons for the marketing year that runs through September, according to a statement from the food ministry late on Tuesday.
According to the Indian Sugar Mills Association, India is expected to produce 35 million tons this season and consume 27 million tons. The country will have a surplus of 16 million tons after including last season’s stockpiles of about 8.2 million tons.
India shipped only 6 million tons of sugar for the 2020-21 season, but due to an increase in global prices by almost 20% last year, there are expectations prior to the restriction announcement that India could export around 9-11 million tons this season.
According to statista, India is the third-largest sugar exporter in the world after Thailand in second place and Brazil at the first.
The restriction of sugar came not long after its government made an announcement to prohibit wheat exports citing food security risks after a record heat wave slashed production and drove up prices.
Indonesia also issued a ban on exporting palm oil, while Malaysia moved to limit chicken exports.
Economists expected a ban to fuel food prices that are already high due to the impact of the Russia and Ukraine war.
