Ethanol manufacturers struggle to export surplus supplies

Ethanol manufacturers say they are still struggling to export surplus supplies, even after lobbying successfully last year to change the law to allow exports, the Bangkok Post reports. “The government should enforce measures to make it easier for ethanol manufacturers to export these surplus products,” said Rungrote Sukkirtkijpibul, plant director of Sapthip Co. Ethanol products used to be considered the same under the law as alcohol in beverages, and exports were banned to prevent tax avoidance. Currently, local demand for ethanol averages 1.2 million liters per day but the supply is 3 million liters. The production cost is 21-22 baht (US$0.64-US$0.67) per liter but the market price is only 23 baht (US$0.70) so margins are thin. (January 6, 2009)