Thailand, the world's second-largest sugar exporter, produced 134.93 million tonnes of sugarcane and a record-breaking 14.6 million tonnes of sugar in the previous season.

Production of sugarcane in the current season, which officially started on Nov. 20, is estimated to be at 126 million tonnes, said Boonthin Kotsiri, a director at the Office of the Cane and Sugar Board.

"Output in 2018/19 is expected to fall because of decreased rainfall," Boonthin told Reuters, adding that the drop in cane prices also stoked farmers to switch to other crops, in particular cassava.

"The initial cane price this season is 700 baht ($21.32) per tonne, the lowest in 10 years."

Cane prices stood at 880 baht in the 2017/18 season.

Global sugar prices fell to their lowest levels in over 10 years in September and raced to a seven-month high later in October.

Brazil, Thailand's main competitor, also expected lower cane output this season.

The official prediction is in line with a US Department of Agriculture report in October, which expected cane and sugar output to fall to 130 million tonnes and 13.8 million tonnes respectively, citing unfavorable weather conditions.

Thailand consumes 2.6 million tonnes of its sugar production domestically and exports the remainder.