roduction is expected to increase to 11.4 million metric tons, up 14 per cent from the previous year due to a better than expected average sugar extraction rate resulting from favorable weather conditions. This will likely spur sugar exports to around 9 million metric tons.Meanwhile, MY2014/15 sugar production is forecast to decline to 10.4 million metric tons, down 9 per cent from the previous year, in anticipation of El Nino related weather conditions.
This will likely affect the average yield of sugarcane and overall sugar extraction rates.
However, MY2014/15 sugar exports are likely to increase to 9-10 million metric tons due to large inventories from MY2012/13 and MY2013/14.
In addition, Thai sugar exports will likely benefit from the ASEAN (Association of Southeast Asian Nations) Economic Community Agreement (AEC), which takes effect in 2015.
