Reduced sugar production in Brazil increases the importance of supplies from Thailand and India

It is expected that in 2024/2025 MY in Thailand sugar production will increase to 10.6 million tons compared to 8.8 million tons last year.

This is reported by bangkokpost.

Forest fires and drought in Brazil, which hit the world sugar market, put the burden of covering lost supplies on Thailand and India. But both countries have recently been reminded that they face their own risks.

Futures this week jumped to the highest level since February as concerns grow over crop damage from fires, heat and drought in Brazil. This threatens to push up food prices from soft drinks to candy and turn traders’ attention to how other major producers are doing.

The good news is that Thailand’s harvest is expected to resume in the upcoming 2024/2025 MY season. However, the September floods were a new warning of weather risks and there are concerns that the harvest could be delayed if heavy rains continue. And in India, support for ethanol production means that officials are likely to continue to restrict sugar exports.

Last month, the International Sugar Organization predicted that in 2024/25 MY sugar production will lag behind consumption by 3.6 million tons, a larger deficit than in the current season, which is about to end.

“Although there are no signs of recent floods affecting plantations, the market is closely monitoring the situation. If the rains continue into November, it could delay cane processing until January – by about a month,” Virith Viseshsindh, secretary general of the Board’s Office of Cane and Sugar Production, said in an interview on Tuesday.

Any delays could cut off supply to the global market at a time when supplies from Brazil are typically slowing, with serious consequences.

Tags: Brazil, sugar, India