Cassava and Sugar Cane Farmers Push State on Energy Transition Plan
Thai cassava and sugar cane farmer associations are urging the government to develop a long-term energy transition plan after biofuel subsidy measures expire on September 24, 2025. They warn that without replacement support, E20 ethanol fuel will lose competitiveness, demand will fall, and both raw material prices and farmer incomes will be threatened. The groups call for a policy shift away from price subsidies toward value-added systems and new markets, citing Brazil and India as examples of successful long-term agricultural energy planning.
The Thai Cassava Farmers Association and the Northeastern Sugar Cane Farmers Institute fear that the end of biofuel subsidy measures on September 24, 2025, will damage E20 ethanol fuel demand and destabilize the raw material market for sugar cane and cassava. Association chairman Rangsi Paisoat said the organizations have called on the government to urgently prepare an energy transition plan for 2025–2029, after price compensation measures for biofuels under the Fuel Fund Act expire in September 2025.
Farmers worry that without replacement measures, E20 pricing will lose its advantage over regular petrol, consumer demand for ethanol will drop, and the supply chain for both raw materials will suffer. "The real concern for farmers is not just the end of subsidies, but the lack of clarity about what measures will replace them," Paisoat said. "If the price gap between E20 and petrol narrows enough to discourage buyers, ethanol demand could fall, affecting cassava purchases and prices and ultimately farmer income."
Thailand currently has ethanol production capacity of more than 7 million liters per day from 28 factories processing sugar cane, molasses, and cassava, but actual consumption is only around 3.5 million liters daily. Without supporting measures, falling demand could worsen overcapacity and disrupt the entire supply chain from farmers to factories to the bioenergy industry.
Paisoat said the government should shift focus from "price-support funds" to "value-added systems and new markets" to help Thai agricultural raw materials compete long-term, particularly by promoting E20 as a standard fuel to reduce dependence on imported oil and strengthen energy security.
Sithibun Ratchatasuviroj, chairman of the Northeastern Sugar Cane Farmers Institute, added that the government must set clear, continuous ethanol and E20 policies so farmers and industry can plan production, investment, and raw material management over the long term.
Sugar cane is not merely a sugar raw material but also feeds ethanol, bioenergy, and downstream industries. If the ethanol market shrinks without new outlets, the impact will cascade from raw material demand through cane purchases, production costs, cane prices, and farmer income. The 2025–2029 energy transition plan should therefore set firm targets for ethanol and E20, build a secure bioenergy market, and adapt the long-term agricultural planning models of Brazil and India for Thailand's use. The government, industry, and farmers must all have a voice in setting the direction to ensure energy transition advances alongside agricultural and grassroots economic security.