Illustrative photo (Source: VNA)

Bangkok (VNA) -
Thailand, the world's second biggest sugar exporter, will apply a new management system for sugar production and distribution in the 2017-18 crop, which will begin in November.

The move is to better following regulations set by the World Trade Organisation (WTO), of which the country is a member since 1995.

According to Somsak Jantararoungtong, Secretary-General of Thailand’s Office of Cane and Sugar Board (OCSB), said related parties, including millers, farmers and the government, agreed on the new system.

It has been designed to govern Thailand's sugar industry in order to secure domestic sugar supply with the repeal of the quota system after more than three decades.

Legislative process is now underway, he said, adding the expectation for new regulations to be imposed by November.

However, experts said the new system might create additional risks for Thai sugar millers.

Previously, Thailand agreed with the WTO to revoke its quota system, known as Quota A, for 2.2-2.5 million tonnes a year to secure sugar supply at home, after it was challenged by Brazil, the world's biggest sugar exporter.

Brazil said Thailand's subsidies for sugar producers had dragged down global prices and allowed the country to win a larger market share at the expense of Brazilian producers, which is not in line with international trade agreements.-VNA