French sugar trader Sucres et Denrees SA, or Sucden, expects a larger deficit in the world’s sugar supply balance in the 2019-20 crop year (October-September), at around 4 million tons, due to projected decreases in output in India, Thailand and the European Union.
It is reported by Reuters.
Eduardo Sia, a sugar trader for Sucden in Brazil, said that sugar production in Thailand should fall around 10 percent in 2019-20 to 12 million tonnes, as cane farmers switch to other crops that could offer better returns.
Sia said sugar prices in Thailand have fallen around 20 percent since the government made adjustments in some subsidies to the sector, following a World Trade Organization agreement.
«They are starting to feel the weight of a more open market», — the trader said, referring to sugar and cane producers in Thailand.
India’s production was seen at around 26 or 27 million tonnes in 2019-20, down from 31,7 million tonnes expected for 2018-19, projected Sucden. The reduction is partly a consequence of less favorable climate conditions.