Sugar production in Brazil may hit due to heat

26-Apr-2025 01:43 PM

Sugar production in Brazil may hit due to heat
★ Sugar prices in London have reached a two-week high, largely driven by a drought in Brazil that is expected to reduce sugarcane production, leading to higher sugar prices. The Indian Sugar Mills Association (ISMA) reported that India's sugar production from October 1 to April 15 has been 25.5 million metric tons, which is 18% lower than the same period last year. The total production for the 2024-25 season is expected to reach 26.4 million tons, down from the earlier estimate of 27.27 million tons.
★ India's Ministry of Earth Sciences has predicted an average monsoon with 105% of normal rainfall this year, which raises hopes for better sugarcane yields and higher production.
★ According to the USDA, Brazil's sugar production for the 2025-26 season is expected to increase by 2.3% to 44.7 million tons. By March 12, sugar production in Brazil's Central-South region could rise by 6%, reaching 42.4 million tons.
★ The global sugar market is expected to see a surplus of 2.7 million tons in 2025-26, after experiencing a deficit of 3.7 million tons in 2024-25. Meanwhile, Thailand's sugar production for 2024-25 has increased by 14%, reaching 10 million tons, which could put pressure on prices.
★ With India's sugar production expected to decrease, sugar prices are likely to rise.