If a latest report by the US Department of Agriculture (USDA) is to be believed, India is set to push Brazil to second position in sugar production during 2018-19 after 15 years. The country's sweetener production is estimated to touch 35.9 tonnes, registering an increase of about 5.2 per cent than last year. The report by USDA's Foreign Agricultural Service wing has estimated Brazil's sugar production to dip by 8.3 MTs and bringing its total production to 30.6 MTs during this sugar year. It said the 21 per cent drop in sugar manufacturing is primarily “due to lower sugarcane yields and more sugarcane being diverted towards ethanol production as record global sugar supplies have led to weak prices.”
The report attributed that the higher area and yields would push the sugar production in India, adding that consumption is also forecast at a record 27.5 million tons due to a growing population and strong demand from food processors. “Exports are forecast to more than double to four million as sugar mills seek to reduce stocks which are expected to soar to a record 18.1 MTs,” the report said. It added that India's huge sugar pile-up due to consecutive years of surplus production will push the global stock to a new high of 53 MTs.
