Thai moonshiners are struggling to stay in business due to rising costs despite the government cutting red tape around liquor production.

Despite the new policy seen to promote fair competition among brewers, small-scale manufacturers are lamenting the soaring prices of ingredients.

Titaporn Makmuang, owner of the Permsap Brewery in Nakhon Ratchasima province, said: 'It is good news that the government has lifted the liquor production capacity so we can easily scale our business.

'But it's also bad because production costs are rising and we cannot compete with big corporations.

'Molasses was previously priced at three baht per kilo. Today, it's seven to eight baht. Glass bottles are more than six baht each, but bigger corporations buy them for much less.'

The new liquor edict has lowered the entry barriers into the notoriously monopolized industry by dispensing with the minimum registered capital and required production capacity for beer.

However, local distillers are calling for more amendments.

Titaporn said: 'I think the rules regarding the revenue stamp cost structure should be adjusted. The cost should be divided into two categories, for the big corporations and for small to medium-sized businesses.

'If this law came into effect seven years ago while 200 local breweries were still open, it would have helped lift local economies, but more than hundreds of them had to closed down due to not being able to compete.'

The stamps, implemented in Thailand in 2019, help the government collect tax on liquor more efficiently.