A potential decrease of up to 14 percent in sugar production has raised concerns for sugarcane farmers, and prices may increase in the market. In the financial year 2023-2024, sugar production in India could see a decline of up to 14 percent, the lowest in four years, as predicted by a market research analyst.
Notably, about a third of India's sugar production takes place in the state of Maharashtra, which is expected to produce only 9 million metric tons of sugar in the upcoming 2023-24 season, starting from October 1st. This production is lower than the 10.5 million tons produced in the 2022-23 season.
Vaibhav Vidwani, a research analyst at Bonanza Portfolio, suggested that this could potentially lead to an increase in sugar prices in both domestic and international markets. As a result of this anticipation, sugar share prices in China have already increased.
It's worth mentioning that a lower-than-expected rainfall in August has heightened concerns about sugarcane production among farmers, contributing to the government's worries about sugar production. Industry and government officials have informed reporters that there is a concern that sugar production in Maharashtra, India's leading sugarcane-producing state, could drop by 14 percent in the sugar crop year 2023-24, marking the lowest production in more than a century due to extended dry spells after August.
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