Lower sugar output in China is likely to increase the global sugar deficit during the ongoing sugar season 2021-22, said broker StoneX on Wednesday.
China is one of the largest sugar importers and the recent frosts in Guangxi and shifting of farmers to other crops has resulted in lower production of sugar in China, said the broker.
For the third consecutive year, the demand is exceeding supply indicating a deficit of 1.9 million tonnes. Earlier the deficit was projected at 1.8 million tonnes in November.
The sugar output in China is expected to be lower by 300,000 tonnes to 10 million tonnes in the 2021-22 season which is 6.3 % less than the previous season.
This will result in increasing import of sugar by China which is likely to increase from 4.5 million to 5.5 million tonnes.
According to the broker, the sugar output in India and Thailand would be at 31.5 million tonnes and 10.7 million tonnes, respectively.
The sugar output in Brazil’s center-south region would remain at 34.5 million tonnes from 565 million tonnes of sugarcane, it said.
