Global sugar deficit to be reduced to 1.1 million tonnes due to higher Indian production | Economy

Global sugar supply deficit in India is expected to fall by 42% in the 2021-2022 season due to high production, according to StoneX, the world’s second largest confectioner.

In the 2021-2022 campaign, StoneX raised India’s sugar production estimate – from October to September – to 33.2 million tonnes, 5% higher than forecast in January, when favorable weather allowed higher production.

As a result, the expected deficit for the 2021-2022 season is currently projected at 1.1 million tonnes and 1.9 million tonnes in January.

The International Sugar Organization (ISO) cut its global supply deficit at the end of February.

StoneX said more Indian production would offset the problems in Thailand and China, where production is lower than expected.

Its forecast for Brazil, the world’s largest sugar producer, remained unchanged. The new season, which begins in April, is expected to harvest 565 million tonnes of sugarcane, 7% more than the previous season and 34.5 million tonnes of sugar.

StoneX hopes that Brazilian mills will continue to prioritize sugar production over ethanol in the new season, despite higher energy prices due to the conflict in Ukraine.