India: Sugar Semi-annual
Link to report:
Marketing year (MY) 2019/20 (out-year/Oct.-Sept.) centrifugal sugar (henceforth sugar) production will decline for the second consecutive year to 29.3 million metric tons (MMT) (including 620,000 metric tons (MT) of khandsari), which is 14.6 percent below the previous season. A lower than expected diversion of sugarcane (hence cane) for crushing to sugar and net reduction in the national average sugar recovery rate will moderate sugar output. Surplus sugar production in Uttar Pradesh (UP) will not be enough to compensate for a straight 41 percent and 12 percent drop in sugar production from Maharashtra and Karnataka, respectively, but a large beginning inventory should support domestic consumption estimated at 28.5 MMT. With current incentives and normal market conditions, India should be able to export some 4 MMT of excess sugar in the out-year. Note: All sugar data in the report are raw value basis unless otherwise mentioned.
