World’s No. 2 sugar producer India may need imports in 2025

India, the No.2 sugar producer, has been a net exporter of the sweetener for the past six years.

However, it is set to ban exports in the crop year that started in October and may even be forced to import in the following year as farmers turn to other crops, according to traders, industry officials, and farmer interviews.

The production decline is driven by unusually dry conditions, fuelled by El Nino, in the western state of Maharashtra and its neighbor to the south, Karnataka, which, along with Uttar Pradesh in the north, accounts for over 80% of Indian sugar output.

India produced 33.1 million tons of sugar from January to September, second only to Brazil’s expected 46.9 million tons. Currently accounting for 12% of globally traded sugar, India has been the second-largest exporter over the past five years, averaging 6.8 million tons. However, it was surpassed last year by Thailand.

In August, the Indian Sugar Mills Association indicated that the country’s production might drop to 31.7 million tons in the year beginning in October. More than 180 farmers from 11 sugarcane-producing districts in Maharashtra and 49 farmers in Karnataka informed Reuters that reduced monsoon rainfall during the crucial growth phase has stunted crop development.

India is home to about 50 million sugar producers. Based on discussions with at least ten farmers in each of the highest-producing districts in the two states, Reuters’ calculations suggest a potential 12.2% decrease in production this year to 29.05 million tons. Internal forecasts from five trading companies for this year’s production range from 29 million to 30 million tons.

Production is expected to decline next year, with estimates ranging from 25 million to 26.9 million tons, aligning with Reuters’ calculation of 26.6 million tons. On the flip side, sugar consumption in India is projected to reach a record 29.2 million tons this year, increasing to around 30 million tons next year, according to traders’ forecasts.

Source: RP News

Click here to read the original text: https://revistarpanews.com.br/india-segundo-maior-produtor-mundial-de-acucar-pode-precisar-de-importacoes-em-2025/

Sharing is caring!