Brazil is expected to produce 413 lakh tonnes of sugar this time

23-Jul-2024 03:10 PM

Sao Paulo. A leading brokerage firm has reduced the sugar production estimate for the current marketing season (April-March) of 2024-25 in Brazil by 3 lakh tonnes to 413 lakh tonnes.

The firm says that on one hand, the use of sugarcane in sugar production is likely to decrease somewhat and secondly, the quality of sugarcane is also seen to be weak, which may lead to a slight decrease in the recovery rate of sugar. 

According to an analyst of the brokerage firm, sugarcane is not being used in the mills for sugar production as much as was estimated earlier. One reason for this is the poor quality of sugarcane this time compared to last year.

The crop is being harvested quickly and its maturity is not being taken into account. The broker firm had earlier estimated the use of 51.2 percent sugarcane in sugar production during the 2024-25 season, which has now been reduced to 50.3 percent.

Brazil, located in Latin America, is the world's largest producer and exporter of sugar. A huge amount of sugarcane is used there for the production of sugar as well as ethanol. Millers often give priority to its production out of these two, due to which they expect to earn more.

Last year, when the global market price of sugar jumped to the top level, production in Brazil also increased to a new record level.

Now the price of sugar has come down, so the enthusiasm of millers towards its production there has decreased somewhat.

Apart from this, despite record exports in the 2023-24 season, the industry in Brazil still has a huge outstanding stock of sugar.