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Weather concerns to crush India's sugar production, export hopes

Sugarcane yields in India are decreasing due to in 2015's dry spell and this year's extreme rains, which could decrease the country's sugar production below usage levels for the first time in eight years, farmers and market officials said on Monday.

Lower-than-expected output by the world's second-largest sugar producer might eliminate the possibility of India permitting exports in the existing season ending in September 2025, supporting worldwide sugar prices.

Maharashtra, Karnataka, and Uttar Pradesh account for more than 80% of the nation's total sugar production, with lower walking cane yields in these states prompting trade homes to decrease their output price quotes for the 2024/25 season.

The production could be up to around 27 million metric loads from the last year's 32 million loads and listed below annual consumption of more than 29 million loads, said India head of a. global trade home, who declined to be called.

Throughout the summer season, the walking stick crop dealt with extended. stress due to the absence of water, B.B. Thombare, president of. the West Indian Sugar Mills Association informed Reuters.

When the monsoon season started, there was excessive rainfall. and limited sunlight, which likewise adversely affected the crop's. growth.

The negative weather curtailed walking stick yields by 10 to 15 heaps. per hectare, Thombare stated.

The western state of Maharashtra and neighbouring Karnataka,. which together produce nearly half of India's sugar, got. lower-than-average rains in 2023, bringing down tank. levels.

Usually, we harvest 120 to 130 tons of walking cane from one. hectare of land, but this year yields have actually fallen to 80 lots. regardless of all our efforts, says Shrikant Ingle, who cultivated. cane on 5 acres of land in Maharashtra's Solapur.

Drought did not impact the crop in Uttar Pradesh, the. country's leading sugar-producing state in the north.

Nevertheless, plantations in the state were affected by red rot. disease, which reduced sugarcane yields, stated a senior state. government official.

To manage the spread of the disease, we are recommending. farmers to adopt brand-new walking cane varieties, the authorities stated.

The down modification in the production estimate has. gotten rid of the possibility of any exports in the present season,. the head of the trade house stated.

Sugar industry seeks 2 million lots of exports, while the. federal government says it might enable limited exports, if any surplus. remains after ethanol needs are met.

(source: Reuters)