Sugar Market: Brazil will be the leader in production and export
Kolhapur News : There are signs that this year’s sugar season will be very fruitful for Brazil. This year, there is a possibility that along with sugar production in Brazil, exports will also be high. Currently, the season there is going well. This is leading to higher production than expected. It is likely that Brazil’s sugar will be exported to most countries this year as the price is good in the world market.
This year there is a possibility that the production of sugar will decrease worldwide. Many sugar producing countries like India and Thailand are likely to fall behind in terms of sugar production this year. In this background, increasing sugar production in Brazil will be beneficial to the sugar industry there. A survey conducted by the organization Job Economy has found positive aspects regarding sugar production.
It is estimated that the total production of Brazil will be 42 million tons this year. It is likely that this production will be 20 lakh tonnes more than the sugar estimate previously predicted by the organization. Sugar production is booming in the southern and northeastern states of Brazil. It is estimated that Brazil’s sugar export this year will be as high as 32 million tons. In 2022-23 it was 27 million tonnes.
It is estimated that only Brazil’s sugar share will go up to 50 percent in the sugar going to the countries of the world . Sugar prices are high in the international market and sugar mills in Brazil are benefiting from this favorable environment.
Brazil has also changed its stance on ethanol production this year. Brazil is also flexibly thinking of reducing ethanol production somewhat this year to take advantage of rising sugar prices. Some factories have also started producing excess sugar.
India’s position will be shaky
Two years ago, India set the record by surpassing Brazil in terms of both production and exports. Took first place in the world in both respects. This made India dominant in the world market.
This year, however, due to the export ban policy of the Indian government, the position created in the global market will be shaken. The Center is planning a policy to contain possible lower production and price hikes in the domestic market.
Due to this, there is doubt about how much sugar of India will go out of the country. It is certain that the increased rate will not benefit the Indian sugar industry.
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