CropGPT - Sugar - Week 39

CropGPT - Podcast for Soft Commodities

Global Sugar Market Weekly Summary: Key Highlights for September 29, 2024

• India: Despite challenges from droughts in the southern regions, India's sugarcane production for the 2023-24 season remains strong at 4532 lakh metric tons. However, for the 2024-25 season, industry bodies recommend reducing the sugar quota for October 2024 to address unsold stock due to excessive rainfall, proposing a cap below 22 lakh metric tons. In addition, the Bhogpur Cooperative Sugar Mill’s sustainability initiative, which uses crop stubble for renewable energy, highlights the sector's commitment to environmental responsibility.
• Ukraine: Sugar production in Vinnytsia has increased to 41,000 metric tons from 332,000 metric tons of processed sugar beet. This increase positions Ukraine as a stronger contributor to both domestic and international sugar markets, with sugar beets occupying about 13% of the region's harvested area.
• Russia: In Bashkiria, sugar beet harvesting has reached 40% of the total crop area, yielding 1 million metric tons. The Chishminsky Sugar Factory plans to increase production by 25% post-reconstruction, further strengthening regional output.
• Kenya: Sugar quality in Western Kenya has improved with the implementation of a quality-based payment system. This system is expected to boost farmer incomes and industry efficiency. However, the coast region faces challenges due to factory closures and sugarcane shortages.
• Moldova: Moldovazahar joined the Association of Sugar Producers to strengthen government dialogue, particularly around addressing drought-related challenges. This move aims to create a supportive environment for sugar producers in Moldova.
• Thailand: Thailand, the world’s second-largest sugar exporter, saw a 20.37% drop in production for the 2023/24 fiscal year, down to 8.8 million metric tons. However, projections suggest an 18% recovery in the next year, with production expected to reach 10.39 million metric tons.
• Brazil: The ongoing drought in Brazil threatens sugarcane production for the 2025/26 season. This environmental crisis, combined with rising wildfires, could destabilize global sugar markets, affecting global supply and pricing.
• Philippines: The Sugar Regulatory Administration in the Philippines has increased import clearance fees on high-fructose corn syrup, aiming to protect local sugar producers from competition with cheaper sugar substitutes. This move underscores the challenges faced by domestic producers amid high production costs.
• Global Sugar Prices: Sugar prices have surged, largely driven by climate challenges in key producing regions such as Brazil. These fluctuations are affecting global market dynamics, trade, pricing, and supply chain stability.

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