The Nation newspaper reported that the Thai cabinet on October 31 decided to approve the proposal of the Ministry of Commerce to add sugar to the list of goods subject to price control. The decision was announced by Thai Prime Minister Srettha Thavisin after a cabinet meeting on the same day, effective from November 1.

The Central Committee for the Price of Goods and Services, headed by Commerce Minister Phumtham Wechayachai, has agreed to regulate sugar prices to reduce the impact on consumers. The move comes after the Thai Sugar Board announced last week that it would increase the ex-factory price of sugar by 4 baht (2,700 VND) per kilogram. The announcement sent consumers rushing to buy sugar amid fears of rising prices.

The agencies announced that the ex-factory prices of granulated sugar and refined sugar will be kept at 19 and 20 baht per kilogram. The retail prices will be 24 and 25 baht each.

In addition to keeping prices unchanged, the authorities will also control sugar exports. Any company that wants to export more than one ton of sugar must seek permission from the authorities. Mr Phumtham said the government’s decision would not affect sugarcane farmers, who will continue to receive government subsidies.

Before Thailand, India announced plans to ban sugar exports for the season starting in October, the first such ban in seven years. On October 18, PTI reported that the Indian government had extended the ban on sugar exports beyond October and until further notice. The decision was taken to meet domestic demand during the festive season.

India is the world's largest producer of sugar and the second largest exporter. Sugar is a controlled commodity and producers must seek government approval to sell it abroad.