Mr.Paiboon Ponsuwanna, the Federation of Thai Industries' deputy secretary-general, said that since the OCSB had rejected the request, companies would now have to ask the Commerce Ministry for permission to raise retail prices. Makers of each product affected by sugar price rises would prepare details of increased production and logistics costs to submit to the ministry, he said.

Mr.Kamthorn Kittichotsak, a member of OCSB and a cane farmers' representative, said that opening up the export quota could lead to more surplus domestic sugar and less money for the Cane and Sugar Fund. He urged food processors to be patient and considerate to the public and farmers, adding that cane farmers had been waiting for 25 years to see sugar prices increase to eight baht per kilogramme. He also recommended that food processors adjust their costs to cut higher production expenses.

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Thailand looks set to sign a free trade agreement with South Korea under the Asean-South Korea free trade framework over the next three months, according to the Trade Negotiations Department. Chutima Bunyapraphasara, the department's director-general, said the pact was expected to be officially signed in August after Thailand has finally cleared hurdles with South Korea. Asean and Seoul started FTA talks in 1995 and the agreements were signed with Asean members except for Thailand, in May 2006 and took effect in July 2006. Thailand had backed off from signing the Asean-South Korea FTA over differences in the treatment of certain agricultural products, particularly rice and livestock by Seoul.

After almost a year of negotiations, Thailand concluded talks with South Korea under the Asean-Korea free trade agreement (AKFTA) in December of last year after Seoul allowed an extension for import tariff reductions on Thai goods from 2010-12 to 2016-17. Thai items that have been given extensions for tax cuts and/or waivers include steel and steel products, cosmetics, raw hides, tanned leather and leather goods. Other products that would enjoy benefits from Seoul's pledged tariff cuts include electrical appliances, particle board, plywood, cane molasses, yarn, frozen shrimp, tapioca starch and squid.

South Korea is Thailand's eighth-largest trade partner, with bilateral trade value of nearly US$7 billion. The pact was expected take effect early next year, said Ms Chutima. She said Thailand was also expected to conclude talks with India in the next two months, as negotiators from the two countries have already agreed on tariff cuts on most of the 3,000 products under negotiation last July.

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