Low production in Brazil is likely to strengthen the global sugar market

14-Oct-2024 08:43 PM

Sao Paulo. The maximum (90 percent) production of sugarcane and sugar in Brazil is in the Central South region where sugarcane crops are being damaged due to lack of rain, high temperature, dry weather and forest fires. As a result, sugar production there has been cut by 10 lakh tons by various analysts.

The estimate of sugarcane production is also being reduced significantly. According to industry analysts, due to lack of rain and intense heat, not only is the average yield rate of sugarcane being affected in the Central South region, but the recovery rate of sugar from sugarcane is also decreasing.

Although sugar production in the Central South region remained normal from April to August, it started decreasing from September.

There is not much decline right now because the supply and crushing of good quality sugarcane is increasing, but when the supply of sugarcane scorched by fire and heat will increase, then the sugar production will be affected.

The sugarcane production estimate in the Central South region has been reduced by 1.7 percent to 59 crore tons. Usda Post has reduced the sugar production estimate for the whole of Brazil by 10 lakh tons from 440 lakh tons to 430 lakh tons.

If 10 percent (40-45 lakh tons) production in the northern and northeastern region of the country is excluded from this, then the production of the central southern region will fall below 400 lakh tons. Sugar produced in the northern region is used to meet the domestic demand and needs of the country.