BANGKOK — China’s sudden decision to suspend imports of syrup and sugar blends from Thailand from the end of 2024, with no exemptions granted since January 3, has posed a major challenge for the Thai government in early 2025.
On January 5, the Minister of Agriculture and Cooperatives, Narumon Pinyosinwat, announced that the Ministry of Agriculture, through the National Bureau of Agricultural Commodity and Food Standards (ACFS), had informed Thai Prime Minister Paetongtarn Shinawatra of the latest developments and facts regarding China’s suspension of imports of syrup and sugar blends from Thailand. The ban, which has been in effect since December 10, 2024, has led to ongoing efforts to resolve the issue.
Minister Narumon explained that the resolution of the matter requires the cooperation of several ministries, as it exceeds the legal authority of the Ministry of Agriculture alone. The Chinese import ban involves the Cane and Sugar Act, which is under the Ministry of Industry, and the Food Act, which is overseen by the Food and Drug Administration (FDA), which is under the Ministry of Health.
The ACFS, in cooperation with the Agricultural Attaché in Beijing, provided technical information to support the negotiations. The Department of Commerce’s Foreign Trade Division and the FDA have also been involved in the search for a solution.
In addition, the Ministry has compiled a list of exporters affected by China’s import ban and sent an official letter to the General Administration of Customs of China (GACC) through the Beijing Agricultural Affairs Bureau requesting an exemption for the affected shipments.
On December 25, 2024, the ACFS held a meeting with key authorities, including the Ministry of Foreign Trade, the Ministry of Trade Negotiations, the Agricultural Commodities and Food Standards Bureau, the Ministry of Agriculture, the FDA, the Customs Department, the Industrial Estate Authority of Thailand and private sector representatives from the sugar industry.
During the meeting, the private sector reported unusually high syrup exports from Thailand, which they attributed to tax evasion practices affecting China’s domestic sugar industry. It is also possible that inferior products from certain Thai producers have entered China, prompting Beijing to erect non-tariff barriers to protect its domestic market.
However, the ban does not apply to “premix sugar”, a product manufactured specifically for export to the food industry.
Tosaporn Ruangpattananon, president of the Thai Refined Sugar Trade Association, told Prachachat that the association’s 47 members who produce syrup and sugar blends for export to China have suffered significant losses due to the suspension of the GACC as no warning was issued. As a result, shipments worth around $8.6-11.5 million (300-400 million baht) are “stranded at sea” and cannot be imported into China.
Apart from the immediate losses, all 74 syrup and blended sugar producers in Thailand collectively purchase large quantities of raw sugar domestically, totaling 2.1 million tons between January and October 2024, compared to 1.6 million tons in 2023. If the import ban remains unresolved, it could severely affect sugar prices and farmers’ income, as these producers account for a significant portion of the domestic sugar market.
Thailand exported processed sugar (excluding raw sugar) to China under the ASEAN-China Free Trade Agreement (ACFTA) in 2023, with China importing products worth 982.52 million dollars (34 billion baht).
Thailand was the largest exporter with $853.65 million (29.54 billion baht). To qualify for the ACFTA agreement, exporters must obtain a Form E certificate from the Ministry of Foreign Trade, making it a significant export category worth billions of baht annually.
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