Pune: Sugar output from Brazil’s primary centre-south region is anticipated to reach a record-breaking 43.1 million metric tonnes in the 2024-25 season, despite lower supplies of the cane crop, according to sugar and ethanol consultancy Datagro.
The higher sugar output is attributed to mills prioritizing the production of the more profitable sweetener over ethanol, as reported by Datagro Director Guilherme Nastari.
The increased sugar production in Brazil is significant in the context of global sugar dynamics, as it could help offset shortfalls in supplies from other leading producers such as India and Thailand.
Datagro estimates that sugarcane crushing in Brazil’s centre-south region might decrease to 620 million metric tonnes in the 2024-25 season, down from the estimated record of 649.25 million metric tonnes in 2023-24. However, despite this decrease, mills are expected to allocate more cane for sugar production than for ethanol, resulting in a record sugar output of 43.1 million metric tonnes in 2024-25.
The decision to prioritize sugar over ethanol is influenced by the better returns offered by sugar, even though there has been a recent correction in sugar prices.
