China’s Import Ban on Thai Syrups Sparks Crisis in Sugar Sector
China has imposed a comprehensive ban on the import of all Thai syrups and premixed sugar products. This decision came after 10 factories failed to meet the latest safety and hygiene standards set by Chinese authorities. The move has raised concerns about potential mass closures and job losses in Thailand’s processed sugar industry.
Todsaporn Ruangpattananont, president of the Thai Sugar Product Association, explained that the General Administration of Customs of China (GACC) announced the prohibition following factory inspections conducted between July and September. GACC cited non-compliance with food safety and production control requirements, according to Todsaporn.
The inspections, which were coordinated by Thailand’s National Bureau of Agricultural Commodity and Food Standards, revealed several issues, including insufficient sanitary controls and inadequate zoning between production and administrative areas. “None of the factories inspected passed GACC’s audit despite major investments to meet standards,” he said. “This closure of all export channels will cost the industry billions of baht.”
The wide-ranging decision effectively blocks exports across all categories. Earlier, in December 2024, GACC had already restricted the import of suspended syrups and premixed sugar powders under two tariff codes. This prompted Thai exporters to shift shipments under alternative categories. However, the new order, effective from October 27, bans four additional product codes to cover all forms of syrup, sugar blends, and related preparations. It also freezes new registration applications for Thai producers.
The association warned that up to 47 member companies are now at risk, as China remains their largest export market. “If the ban persists, only three to five factories are expected to remain operational by year’s end, as finding alternative markets to replace China has proven extremely difficult,” Todsaporn said.
The sector purchases approximately 3.6 million tonnes of sugar annually for further processing, highlighting the significant impact of the ban on the industry’s operations.
Impact on the Industry
- Economic Consequences: The ban is expected to have a severe economic impact, with billions of baht lost due to the closure of all export channels.
- Employment Risks: Mass layoffs and factory closures are likely, as many companies depend heavily on exports to China.
- Market Diversification Challenges: Finding alternative markets for the products has proven extremely difficult, leaving the industry vulnerable.
Future Outlook
With the current restrictions in place, the future of the Thai sugar sector looks uncertain. The association is urging the government and industry stakeholders to explore new markets and implement strategies to mitigate the impact of the ban. However, given the scale of the problem, immediate and coordinated efforts will be essential to prevent further damage to the industry.