Global sugar production is expected to be 5.5 million tonnes more than use in the next season

18-Jun-2024 12:35 PM

London. A leading analyst firm has estimated the global surplus production of sugar to reach a new record level of 5.5 million tonnes in the 2024-25 marketing season.

According to it, there is a hope of a good increase in sugar production in some major producing countries. According to the firm, in the upcoming season i.e. from October 2024 to September 2025, sugar production is expected to increase to 186.5 million tonnes globally.

It will be the second largest producer after the all-time high of the 2017-18 season. The most prominent producer and exporting country - Brazil may once again have a record production of sugar, while sugar production will also increase in Thailand and the European Union.

According to the firm, global use (consumption) of sugar may exceed 180 million tonnes during the 2024-25 season, but it will be far behind the total production.

Sugar production in the European Union is expected to increase to 172 lakh tonnes. Production is also expected to increase in Thailand.

The surplus production of the 2024-25 season is important because recently the International Sugar Organization (IMO) has increased the level of reduction in global sugar production to 29.54 lakh tonnes in the current season of 2023-24.

This means that sugar production will be 29.54 less than the global consumption in the 2023-24 season, while it will be about 55 lakh tonnes more in the 2024-25 season. This is likely to increase the pressure on sugar prices.