New York: Sugar production in China is estimated to be falling to 9 million tonnes in the 2022-23 season (Oct-Sept), the lowest in seven years, reports Reuters.
The sugar production is expected to be less than half a million tonnes compared to the same period last year.
As per the report released by broker and supply chain service provider Czarnikow, the main reason for the fall in sugar production is the dry weather in sugarcane producing province of Guangxi.
The local supply deficit would rise to 6.5 million tonnes, the second-highest ever due to poor crops, said Czarnikow analyst Rosa Li.
The consumption of sugar in the country has increased after the end of COVID-19 pandemic-related restrictions and it has to increase imports of raw and liquid sugar to meet domestic needs.
Czarnikow estimates that China would import 5.4 million tonnes of sugar in 2022/23.
Prices of sugar have reached the highest level in more than six years in the country.
