Usda Post cuts sugar production estimate in Brazil by 1 million tonnes

11-Oct-2024 07:06 PM

Sao Paulo. Sugar production in the Latin American country Brazil is expected to be affected due to severe lack of rain, severe heat and fire in sugarcane fields.

Although it is not yet clear how much impact the fierce fire has had on the sugarcane crop, but due to other seasonal reasons, its production is likely to decrease there.

The representative office of the US Department of Agriculture in Brazil (Usda Post) has cut the production of sugarcane and sugar in its new report. Earlier, the production of 6450 lakh tonnes of sugarcane was estimated during the 2024-25 season, which has now been reduced by 1.7 percent to 5900 lakh tonnes.

Similarly, the sugar production estimate in Brazil has also been reduced by 10 lakh tonnes from 440 lakh tonnes to 430 lakh tonnes.

It is worth noting that about 90 percent of sugar in Brazil is produced in the central southern part and Sao Paulo is its most prominent producer province here.

Due to the massive fire there, sugarcane crop in about 80 thousand hectares of area was completely or partially damaged.

In view of this, sugar production estimates started being reduced. Earlier, due to lack of rain and high temperature, the average yield rate of sugarcane and the average recovery rate of sugar from sugarcane were being affected.

According to trade analysts, Brazil is the world's largest producer and exporter of sugar. If there is a decrease in production there, the supply in the global market will be affected and the benchmark futures price of sugar in New York and London exchange will improve.

Sugar commercial export from India is closed and crushing of sugarcane will start in Thailand from December.

An analyst has expressed the possibility of production of 393 lakh tons of sugar in the central southern region, which is 10 lakh tons less than the earlier estimate.