The expectation in global markets is that sugar prices may build up on their gains
Output is expected to fall as the area under harvest contracts and the average sugar recovery rate declines, and as ethanol becomes an increasingly attractive option for cane mills, the attache said.
Mills have exported almost an equal amount of raw and white sugar for which the top four destinations are Bangladesh, Iran, Sri Lanka and Somalia.
India’s final sugar output is much higher than expected. A problem of plenty is likely to affect sugar mills unless the government steps in
India produced 32.5 million tonnes of sugar for the whole of the 2017/18 marketing year.
The quota also includes additional quantity given as incentive to mills for achieving more than 75 per cent of their export target and also for producing ethanol from B-heavy molasses instead of sugar.