![Record sugar production and resumption of exports predicted in India next year [World News]](https://foodcom.pl/wp-content/uploads/2023/09/Foodcom_World_News_Global_Transport-1520x760.jpg "Record sugar production and resumption of exports predicted in India next year [World News]")
- For the past two years, India has been suffering from record low sugarcane yields and reduced sugar production.
- The cause is mainly drought. This year’s high rainfall has given favourable conditions for planting the crop for next year.
- Farmers are increasing planting areas, which could contribute to record sugar production in India.
- There is talk of lifting the ban on sugar exports, which will improve the global market for the commodity.
Hopes emerge for more sugar production in India
Farmers in India are in the process of planting sugarcane for next year. Conditions are very good – last year a drought limited cane planting campaigns, while now the abundant monsoon rainfall has meant that water is plentiful. Reservoirs storing water for crop irrigation are much more full than last year, and some are even full. Rainfall in areas producing half of India’s sugar was 39% more than average.
This situation, along with falling prices for alternative crops such as soya and cotton, is encouraging farmers to increase sugarcane acreage, which is expected to contribute to a rebound in production, which has been at a very low level for the past 2 years – last year India produced 31.9 million tonnes, while this season it will be around 28 million tonnes, with India’s annual sugar consumption at 29.6 million tonnes.
Sugar export ban – will it be lifted?
India has been the world’s second-largest sugar producer for five years, exporting an average of 6.8 million tonnes of sugar to countries such as Indonesia, Bangladesh and the United Arab Emirates. However, in the last two years, a reduction in sugarcane yields due to lack of rain has led to a shortage of the commodity.
Two years ago, the Indian government banned sugar exports outside the country. However, this is expected to change imminently – the ban could be lifted next year when the harvest is forecast to be at record levels. This would contribute to a squeeze on global sugar prices, especially at a time when smaller sugar supplies are expected from Brazil, where drought has reduced yields. Forecasts suggest possible exports of 3-5 million tonnes, assuming favourable weather and no pest infestations.
