New York: The global sugar supply is moving towards a lower surplus of 1.1 million tonnes in 2022/23 (Oct-Sept) year as against the estimates of a 2.5 million tonnes surplus made in March after lower yields in countries like India, Mexico and the European Union, reports Reuters.
As per the projections released by the broker and analyst StoneX, the situation would slightly improve in the new season (2023/24) increasing the global supply to 1.3 million tonnes.
The broker has cut the sugar production forecast of India to 32.8 million tonnes from 34.1 million tonnes in the current season.
According to StoneX, the sugar output in India in 2023/24 would be stable at 32.5 million tonnes as the area under cane cultivation would fall by 4% and there would be an increase in the diversion of sugarcane from sugar to ethanol production.
The El Nino phenomenon would also affect the sugarcane output as this reduces soil moisture in Asia. Bruno Lima, StoneX head of sugar analysis said that El Nino would not impact Brazil’s production.