Strong Likelihood of Sugar Price Increase: AISTA

31-Jan-2025 10:26 AM

Strong Likelihood of Sugar Price Increase: AISTA
According to AISTA, sugar production in India is expected to reach 26.5 million tons in 2024-25, compared to 21.12 million tons in 2023-24, indicating a decrease of 5.38 million tons in production.
The season started with an opening stock of 8 million tons, and the total availability is expected to be 34.5 million tons.
Domestic consumption is projected at 29 million tons, with exports expected to be around 1 million tons, leaving an estimated closing stock of 4.5 million tons.
While sugar production has decreased, exports have already been initiated.
The availability of sugar at the end of the season is expected to be lower than last year, creating a bullish market trend and raising the potential for price increases.
The timely opening of sugar exports has been strategic, especially since Brazil is not expected to produce sugar this season.
AISTA forecasts a global sugar shortage of around 2.5 million tons in 2025.
In Thailand, sugar production is expected to jump 18% to 10.35 million tons, recovering from the previous year's drought, which reduced output to 8.7 million tons.
In Brazil, some areas have experienced fires, reducing production, and India is also expected to have lower production this year, which could support international sugar markets.