El Nino and delayed monsoon pose threat to sugar prices, exports, production
The return of El Nino has brought unpredictable weather patterns to various regions, affecting sugar production. El Nino typically brings floods to Brazil and reduces rainfall in India, which has significant implications for sugar production in both countries.
Sugar prices have been soaring in recent weeks, reaching multi-week highs. The global sugar market witnessed an 11-year high in April, driven by tight supplies worldwide.
The return of El Nino has brought unpredictable weather patterns to various regions, affecting sugar production. El Nino typically brings floods to Brazil and reduces rainfall in India, which has significant implications for sugar production in both countries.
However, despite these global price surges, domestic sugar prices in India have remained relatively stable, thanks to government-imposed caps on prices. This has provided some relief for consumers within the country.
Meanwhile, India, the world’s second-largest sugar producer, is grappling with delayed monsoon rains. The monsoon is yet to cover Maharashtra and enter Uttar Pradesh, key sugar-producing states in India. The delayed monsoon could lead to lower production, which may have a cascading effect on the next sugar season and potentially impact exports.
