Thailand´s cabinet has approved a 10 percent increase in domestic sugar prices, equivalent to 2 baht ($0.05) per kilogram, Commerce Minister Phumtham wechaachai said on Tuesday.

The move comes just weeks after the government scrapped a previously announced 20 percent price increase and classified sugar as a controlled commodity, requiring additional approvals to export more than a ton of sugar.

"This is an appropriate measure given the rising costs faced by sugarcane growers," Phumtham explained.

The country exported a total of 7.69 million tons of sugar last year.

Thailand is the world´s second largest sugar exporter after Brazil. The drought has affected the country´s sugar production, which is estimated to fall to 8 million tons this year, of which 2.5 million tons will be used for domestic consumption and the remaining 5.5 million tons will be exported, according to government data.

News source: Mu Tian Technology