Global sugar surplus estimated at 5.8 mn tn

International Sugar Organisation has estimated a higher global sugar surplus of 5.8 million tonne for the year 2006-07.

The London-based body had in August pegged the surplus at around 2.2 million tonne. Higher global surplus may not augur well for the Indian sugar exports, as and when the ban on exports is lifted.

The Cabinet Committee on Prices has deferred a decision on lifting the ban on sugar exports even though the proposal was on the agenda.

In its quarterly report recently released, the ISO said global sugar output is estimated at 158.3 million tonne against a consumption demand of 152.5 million tonne.

Brazil is expected to increase its output by 700,000 tonne on year to 32.9 million tonne while, India's production has been pegged at 24.5 million tonne, by the organisation. Thailand is expected to see a 1.42 million tonne increase in its output to 6.5 million tonne.

"The rise of world prices at the end of 2005 and the first half of 2006 has encouraged a strong production response in both exporting and importing countries," the organisation said.