Sugar output to fall 5% due to poor rains

Sugar output to fall 5% due to poor rains
Highlights

Sugar output to fall 5% due to poor rains. India\'s sugar output is likely to fall 5 per cent to 27 million tonnes in the upcoming 2015/16 crop season due to poor monsoon rains in sugarcane rich states such as Maharashtra, an industry body said on Monday, which could prop up prices amid a global glut.

Exports are expected to pick up after March

New Delhi: India's sugar output is likely to fall 5 per cent to 27 million tonnes in the upcoming 2015/16 crop season due to poor monsoon rains in sugarcane rich states such as Maharashtra, an industry body said on Monday, which could prop up prices amid a global glut.

India's sugar stocks, however, are likely to raise to 9.6 million tonnes at the start of the season on October 1, from 7.5 million last year, said Abinash Verma, director general of the Indian Sugar Mills Association (ISMA). After a string of bumper harvests created an Indian sugar glut, drought could cut supply in the marketing year starting in October, and there is a risk production will drop below consumption for the first time in seven years in the following 2016-17 season.

Meanwhile, the sugar exports are seen rising after March when global prices are likely to rise following bad weather conditions in some parts of the world, the founder of Platts' Kingsman, a leading consultancy, said on Monday.

"I am optimistic that India will be able to export into the rising market by March as bad weather in Central America, Thailand, EU and in some parts of India will lead to a rise in global prices," Jonathan Kingsman said. Indian Sugar Exim Corp said earlier in the day it would soon contract 1,00,000 tonnes of the sweetener for exports in the next season beginning October.

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