China’s ongoing ban on syrup exports from Thailand for food safety reasons will not affect sugar manufacturers in the country, according to statement from the Office of the Cane and Sugar Board (OCSB).
Chinese authorities earlier cited concerns over hygiene standards at Thai factories as the main reason for the ban, but the move is however viewed as a trade barrier against rising syrup shipments from Thailand.
Thailand started exporting syrup to China about 8 years ago, initially exporting 100,000 tonnes a year. The amount has continued to increase, reaching approximately 700,000 tonnes in 2023 and 1.2 million tonnes in 2024. On 10 December 2024, China halted syrup imports from Thailand causing Thai cargo ships containing more than Bt 400 million (US$11.8 million) worth of syrup to be left stranded off the coast of China.
OCSB Secretary-General Bainoi Suwanchatree however said he does not expect the ban to have a serious impact on Thai sugar producers as they have an extensive customer base, exporting sugar to many countries worldwide.
The Industry Ministry and Commerce Ministry as well as the Customs Department are holding discussions regarding the ban. Under a free trade agreement (FTA) between China and ASEAN, duty fees are waived on exports of syrup to China. Beijing government might be concerned that an increase in syrup imports could affect its sugar industry. Suwanchatree said, “China seems to be applying a safeguard measure against imported syrup to protect Chinese sugar producers and sugar cane farmers, as syrup imports increase annually.”
In addition, China government might also be taking action against Chinese syrup companies that are trying to evade from tax by using Thailand as an export base. According to a report, these companies reportedly purchase sugar from Thai sugar manufacturers to produce syrup before exporting the products to China.
China is a leading market for syrup imported from Thailand and Brazil. Currently, Thailand is the 3rd largest sugar producer in the world after Brazil and Australia.
