Indian sugar production outlook 2015-2016 - India is the second largest producer of sugar in the world and it is on track to have a sixth successive year of production surplus in 2015-2016, raising the prospect of further government support for exports.
The estimates are that Indian sugar output in 2015-2016 will reach a record 28.6 million tonnes, up 300,000 tonnes from this season's result. That figure was equal to the all-time high. This bumper crop comes at a time when prices are 35% lower than one year ago..
While production in Maharashtra, the populous state in western India and the top cane growing region, will be limited by a disappointing monsoon, the setback will be limited by the extent of irrigation and the potential for winter rains to replenish soil moisture levels.
Further north in Uttar Pradesh, the second-ranked cane growing state, returns from cane are significantly better than for wheat and rice, the two major alternatives. And output levels in Uttar Pradesh in particular will be supported by the adoption of improved varieties of cane, which will lift yields potentially to 55.2 tonnes per hectare.
Meanwhile in Brazil, the leading supplier nation, sugar prices are seen as trending downwards, hurt by a triple onslaught of high global sugar stocks, a depreciating Real and steps taken by government in India and Thailand to support output of the sweetener.
The estimates are that Indian sugar output in 2015-2016 will reach a record 28.6 million tonnes, up 300,000 tonnes from this season's result. That figure was equal to the all-time high. This bumper crop comes at a time when prices are 35% lower than one year ago..
While production in Maharashtra, the populous state in western India and the top cane growing region, will be limited by a disappointing monsoon, the setback will be limited by the extent of irrigation and the potential for winter rains to replenish soil moisture levels.
Further north in Uttar Pradesh, the second-ranked cane growing state, returns from cane are significantly better than for wheat and rice, the two major alternatives. And output levels in Uttar Pradesh in particular will be supported by the adoption of improved varieties of cane, which will lift yields potentially to 55.2 tonnes per hectare.
Meanwhile in Brazil, the leading supplier nation, sugar prices are seen as trending downwards, hurt by a triple onslaught of high global sugar stocks, a depreciating Real and steps taken by government in India and Thailand to support output of the sweetener.
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