Global sugar production in 2023-24 season is 3 million tonnes less than total use

11-Jun-2024 04:07 PM

London. The International Sugar Organization (ISO) had earlier projected a gap of 6.89 lakh tonnes between global production and use of sugar in the 2023-24 marketing season,

but now it has been increased to 3 million tonnes. In its quarterly report, the ISO has projected global production of 179.3 million tonnes of sugar during the 2023-24 season,

which is less than the February report's estimate of 179.7 million tonnes. The report said that given the huge gap between global production and use of sugar and the possibility of a decrease in the quantity of imports and exports, some important factors may arise in the coming time which will be difficult to ignore.

173 million tonnes of sugar was produced globally in the 2022-23 season. Brazil and India are the two most prominent sugar producers in the world.

On the one hand, the global production of sugar for the 2022-24 season has been cut by four lakh tonnes in the ISO report,

while on the other hand the global consumption estimate has been increased by 18 lakh tonnes from 18.04 crore tonnes to 18.22 crore tonnes.

This quantity is 32 lakh tonnes more than the estimated consumption of 17.90 crore tonnes for the 2022-23 season and is also about 29 lakh tonnes more than the production of the 2023-24 season.

The organization had earlier estimated a global stock of 671 lakh tonnes of sugar available for export during the 2023-24 season, which has now been reduced by 17 lakh tonnes to 654 lakh tonnes.

Although the estimate of demand for sugar imports has also been reduced from 671 lakh tonnes to 668 lakh tonnes, it is still 14 lakh tonnes more than the stock available for export. In this way,

the global outstanding stock of sugar will decrease on meeting the demand. If the production does not improve in the 2024-25 season, then there may be some rise and strength in its prices.