Sugar output may jump 38%

Sugar production in India, the world’s second-biggest grower, may surge by at least 38 per cent after higher prices boosted planting and as rains improve yields, according to a survey. Output may soar to 26 million tonnes in the season starting October 1, eight of 10 producers, traders and consumers said yesterday.

Production may reach a record 29 million tonnes, according to the remaining two. India may produce 25.5 million tonnes in 2010-2011, from 18.8 million tonnes estimated this year, according to the Indian Sugar Mills Association (Isma).

“The higher output estimate is mainly due to a rise in crop area, good rains and increased productivity,” said Vinay Kumar, managing director of National Cooperative Sugar Factories, which accounts for half the nation’s production.

“There will be a surplus next year.” Higher-than-expected production in the world’s top sugar- consuming nation may lower raw sugar prices in New York, which have surged 56 per cent since reaching a 13-month low on May 7 on concern that weather will damage crops in Brazil, Russia, China and Pakistan.

India may ship at least 2.5 million tonnes in 2010- 2011, the National Cooperative said yesterday. Farmers planted cane on 4.77 million hectares as of August 26, up 14 per cent from a year ago, according to the farm ministry.