The Department of Agriculture predicts that global sugar production will rise to 186 million metric tons this year, thanks to higher output in Southeast Asia compensating for a decline in Brazil, reported Market Watch.
According to a report released on Thursday by the USDA’s Foreign Agricultural Service, sugar production in Thailand is expected to increase by 16%, with smaller increases in India and China, offsetting an anticipated 1.5 million-metric-ton decrease in Brazil for the 2024/25 marketing year.
While global sugar consumption is also on the rise, the world sugar market is likely to remain in surplus due to a slow recovery in global economies, which is dampening growth in consumer spending.
In Brazil, the decrease in sugar production is attributed to hot and dry weather affecting the crop. However, production is still expected to be the second-highest on record. Consumption and exports in Brazil are predicted to remain unchanged for the year.
The marketing year for sugar began in May. During the 2023/24 marketing year, global sugar production reached 183.5 million tons. Brazil was the top producer with 45.5 million tons, followed by India with 34 million tons, and the European Union with 15 million tons. The U.S. was also a significant producer, with 8.3 million tons, and this is expected to increase to 8.4 million tons in 2024/25.
