Global Sugar Market Weekly Summary: Key Highlights for May 26, 2024
- India: The sugarcane sector faces severe water scarcity, especially in southern states, impacting production. Andhra Pradesh has seen a drastic reduction in operational sugar factories since 2014, causing distress among farmers with limited government support. Additionally, sugar smuggling near the Bangladesh border threatens domestic supply and price stability. Despite these challenges, Balrampur Chini Mills Ltd. shows strong corporate performance, and Bihar is working to revive mills to boost local production and employment.
- Ukraine: Astarta has diversified its sugar exports, now utilizing both sea and overland routes to the European Union. Despite the war, Astarta reported a 19% revenue increase in Q1 2024 from sugar sales, especially to North Africa and the Mediterranean. The company’s resilient strategy and favorable spring weather facilitated efficient sugar beet planting.
- Kazakhstan: Sugar production from raw cane sugar has surged, with monthly output nearly meeting domestic consumption. Duty-free raw cane sugar imports, approved by the Eurasian Economic Commission, are expected to bolster supplies further, with additional imports from Russia until domestic beet sugar production resumes.
- China: April sugar imports dropped by 27.5% year-on-year, though annual forecasts suggest a rise in imports. Domestic production is set to increase by 3%, signaling growth within China’s sugar sector and indicating a possible decrease in dependency on imports.
- Thailand: Severe droughts have led to a significant decline in sugarcane yields and sugar output, affecting Thailand’s contribution to the global sugar market. This drop highlights how vulnerable sugar production is to climate shifts, impacting global prices and supply stability.
These updates underscore the dynamic nature of the global sugar market, with climatic challenges, policy shifts, and strategic adjustments across major producing countries. For more in-depth analysis, visit CropGPT, where you’ll find comprehensive reports on crop health, weather data, and detailed market insights.
