"Concerns over a possible shortfall on the domestic market have subsided as we have record output this year," Prasert Tapaneeyangkul, secretary-general of the Office of Cane and Sugar Board (OCSB), told Reuters.

He said the 2010/11 crushing season had almost finished and a total of 9.62 million tonnes of sugar was likely to be produced, the highest ever.

"This means we would have up to 7 million tonnes surplus left for export this year, Prasert said.

Thailand is the world's second-biggest sugar exporter after Brazil.

It shipped 5.12 million tonnes in 2009 but only 4.42 million tonnes in 2010, when the authorities bought back sugar from international trading houses for the first time to meet domestic demand. Some 74,350 tonnes was bought back in July 2010.

Prasert said he expected strong global demand at a time when other major producers such as Brazil and Australia faced disruption to crushing and a fall in supply.

A European Union committee voted on Thursday to open a 200,000 tonne duty-free import quota for raw and white sugar, and approved a tendering system for future imports at reduced duties.

Thailand is expected to be a key supplier to the EU. Demand from Russia is also likely to rise as Moscow has switched to buy the sweetener from Thailand after its traditional supplier, Brazil, faced port congestion.

At least 98,625 tonnes of Thai sugar was shipped to Russia from January to April, nearly five times the 21,200 tonnes sold in the same period last year, and Moscow was expected to take more because of competitive prices.

Copyright Reuters, 2011