India is expected to claim the title of the “Sugar Bowl of the World” by toppling Brazil which has been the world’s largest sugar producer for about 16 years.
Produced in India is poised to increase by 5.2 per cent to 35.9 million metric tons thanks to the rise in acreage and productivity, as per a report by US Department of Agriculture’s Foreign Agricultural Service.
Brazil’s output on the other hand may drop by 21 per cent to produce 30.6 million tons due to unfriendly weather and change in focus of production to cane-based ethanol, as reported by Business Standard.
Global production is expected to hit a low of 4.5 per cent, with produce expected at 185.9 million tons, less than the May estimate of 188.3 million. According to the revised data, this is due to the low output of Brazil, Thailand and EU.
Brazil is reported to be the top exporter, followed by Thailand. Marketing season of India runs from October to September, as opposed to April to March in Brazil. Global inventory of sugar is expected to surge as massive stock building in India will balance supplies in China, and the EU, says the USDA.
Raw-sugar futures have been down to 18 per cent this year in New York in the backdrop of bumper crops.
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