India: Record Sugar Production Could Flood Market

Avatar for Matt Hopkins By Scott C. Lucas|27 April 2007

The country’s centrifugal sugar production in marketing year 2007/08 is forecast at a new record of 28.8 million tons, 5% higher than the record set in 2006/07. High cane prices and favorable weather conditions at planting encouraged increased cane planting, which USDA-FAS forecasts at 4.7 million hectares (Ha), compared with 4.5 million Ha in 2006/07. With normal weather conditions, 2007/08 sugarcane production should increase to a new record of around 325 million tons.

At its current pace, production is likely to exceed local demand, which could signal a significant drop-off in the domestic prices for the crop.