Sugar output in India, the largest producer after Brazil, may tumble to the lowest in four years after excessive rains in the biggest growing region cut yields and some farmers diverted the crop to make a gurd. Shares of producers climbed in today’s trade.
Production will probably drop 6.4 percent to 23.5 million metric tons in the year that began on Oct. 1, the smallest since 2009-2010, the median of 12 trader, producer and analyst estimates compiled by Bloomberg show. That’s less than the 25 million tons forecast in September by the Indian Sugar Mills Association, set to revise the outlook in the next two weeks.
Lower output will trim the biggest domestic reserve in five years and reduce the surplus for exports, helping cut a global glut and record losses at producers including Bajaj Hindusthan Ltd. and Shree Renuka Sugars Ltd. Reduced Indian supplies amid a threat to the Brazilian crop from drought may boost prices
Production will probably drop 6.4 percent to 23.5 million metric tons in the year that began on Oct. 1, the smallest since 2009-2010, the median of 12 trader, producer and analyst estimates compiled by Bloomberg show. That’s less than the 25 million tons forecast in September by the Indian Sugar Mills Association, set to revise the outlook in the next two weeks.
Lower output will trim the biggest domestic reserve in five years and reduce the surplus for exports, helping cut a global glut and record losses at producers including Bajaj Hindusthan Ltd. and Shree Renuka Sugars Ltd. Reduced Indian supplies amid a threat to the Brazilian crop from drought may boost prices