Sugar Market Faces Oversupply Threat as Indonesia, Top Trading Partner, Cuts Imports
Thailand's sugar industry faces a major market threat as Indonesia, which buys over 27% of Thai sugar exports, shifts policy to reduce imports and boost domestic production starting January 1st. The move could depress prices for Thai farmer
April 30, 2026 – Nanthapon Jiralerkpong, director of the Commerce Ministry's Office of Trade Policy and Strategy, warned that Thailand's sugar trade faces mounting challenges, particularly from Indonesia's policy shift to reduce import dependence and prioritize domestic production effective January 1st. Indonesia is crucial to Thailand's sugar exports, accounting for over 27% of the country's total sugar export value at $715 million in 2025, making it essential for Thailand to diversify into new markets. Thailand's cane production for the 2025-2026 season is expected to reach 98 million tons, a 7% increase from the previous year due to favorable rainfall, while last year Thailand exported 5.5 million tons of sugar worth over $2.6 billion, ranking second globally after Brazil. Other key buyers include Cambodia ($397 million), South Korea ($263 million), and the Philippines ($216 million), but losing Indonesia's market could depress domestic sugar cane prices and severely impact farmers' incomes and Thailand's export earnings.
