Sugar production likely to be affected by heat wave in Thailand

02-Jul-2024 06:23 PM

Bangkok. In Thailand, the world's second largest sugar exporting country after Brazil, the sugarcane crop is suffering heavy losses due to the outbreak of extremely high temperatures and heat waves, which is likely to affect sugar production there in the 2024-25 season.

There is also no possibility of rain for the next two weeks, while in some areas the temperature has risen to a high of 52 degrees centigrade. Earlier, Thailand was estimated to produce 1000-1100 lakh tonnes of sugarcane, but now the production is expected to be 900-950 lakh tonnes.

If the average recovery rate of sugar from sugarcane remains better, then Thailand can produce between 100-110 lakh tonnes of sugar, otherwise the production may fall to below 100 lakh tonnes.

On the other hand, sugarcane production in Brazil is estimated to be 60-62 crore tons and sugar production is estimated to be between 410-420 lakh tons.

The weather in Brazil is gradually becoming favourable. In the first two and a half months of the current marketing season, sugar production in the central southern region reached above 109 lakh tons,

which was 14 percent more than last year. Due to clear weather, the pace of sugarcane harvesting and crushing is fast. While sugarcane is also being used more in the production of sugar.

According to a leading analyst, the future price of raw sugar in New York Exchange for July delivery can be between 19-20 cents per pound and the future price of white sugar in London Exchange for August contract can be between 550-560 dollars per ton. About 16.70 lakh tons of sugar was delivered in New York Exchange under the May contract.