The U. S. Agricultural Trade Office (ATO) based in Guangzhou China, had forecasted that although the cane sugar production in China had previously increased for 3 straight years, low prices and constraints to further acreage expansion is expected to result in production remaining steady from MY 2018/19.
The Chinese Government and industry statistics estimated the sugar production at at 10.6 MMT, 200,000 MT lower than the previous forecast as a result of revised production estimates for cane and beet sugar.
However now, as per media reports, the sugar production is to go even more lower due to the ongoing and tenacious drought in Yunnan, the second largest sugar cane producing province of southwest has led to lesser outputs of sugarcane crop. The province has been under high temperatures and lesser rains due to which around 1 lakh hectares of sugarcane which accounts to 35 to 36 percent of total sugarcane planting area of the province.
According to the reports of the Yunnan Provincial Sugar Association the sugarcane output due to the drought will diminish the sugarcane output by 2.23 MT and sugar production by more than 2,80,000 tonnes hampering the farmers output by approximately $145 million.