SACAT Seeks 7.081 Billion Baht Budget to Support Sugarcane Cutting at 69 Baht/ton; Targets Burning Below 5% Amid EU Environmental Warnings

Key summary

Mr. Ubon Noi Suwannachatri, Secretary-General of the Sugarcane and Sugar Commission (SACAT), announced plans to request a central government budget of approximately 7,081 million baht to subsidize fresh sugarcane cutting for the 2025/2026 production season at a rate of 69 baht per ton. An additional subsidy of 51 baht per ton is under discussion with the Sugarcane and Sugar Commission (KON) regarding funding sources. SACAT aims to reduce sugarcane burning nationwide to no more than 5% of total cane entering mills during the upcoming season, down from a previous daily limit of 20% to a proposed 15%. The EU representative in Thailand warned that while sugar is not directly covered by CBAM or EUDR regulations, producers must prepare for indirect impacts such as energy costs and supply chain sustainability requirements. SACAT also plans to revise regulations on production efficiency and cane quality.