You are here: Home » International » News » Markets
Business Standard

Global sugar supply may decline as India boosts ethanol production

The world's sugar supply balance is expected to deteriorate in the 2021/22 season that started in October due to higher use of sugarcane to ethanol production in India

Topics
Sugar supply | India | ethanol production

Reuters  |  New York 

sugar

NEW YORK (Reuters) - The world's balance is expected to deteriorate in the 2021/22 season that started in October due to higher use of sugarcane to in and lower production in Brazil, broker StoneX said on Tuesday.

The season will see demand surpassing production for the third consecutive year, StoneX said, projecting a supply deficit of 1.8 million tonnes, 1 million tonnes more than it estimated in October.

Global production was seen at 186.6 million tonnes, while demand was projected at 188.4 million. The broker said demand improved recently as ocean freight prices declined. It saw higher buying from Asian countries and from refining hubs.

is seen producing a record amount of sugarcane after positive weather, but the country's ethanol blending program will take the equivalent of 3 million tonnes of sugar out of the market, StoneX said, resulting in a sugar production that will be basically the same as in the previous crop, or around 31 million tonnes.

Production in Brazil's centre-south region is seen at 31.3 million tonnes, 12% less than a year earlier.

StoneX said Brazil's new sugar season, that starts in April, will see a 6% improvement on total sugarcane volumes to 565.3 million tonnes.

Sugar production in the European Union plus the United Kingdom area is projected to rise nearly 12% in 2021/22 (Oct-Sept) to 17.2 million tonnes, as a wetter summer in Europe boosted yields for beet.

 

(Reporting by Marcelo Teixeira; editing by David Evans)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, December 01 2021. 07:12 IST
RECOMMENDED FOR YOU
.