New York: El Nino phenomenon and farmers shifting to other profitable crops may lower sugarcane output for 2023-24 by 21% to 74 million tonnes compared to the 2022-23 season, said a report released on Wednesday, reports Reuters.
Despite record-high prices for cane, the area under cane cultivation will reduce in Thailand, said Broker and supply chain services provider Czarnikow.
Expecting the El Nino impact on Asia and lower cane cultivation in major parts, the benchmark sugar prices SBc1 are trading near the highest levels in 11 years on the Intercontinental Exchange (ICE). Thailand is one of the major sugar exporters in Asia.
Sugarcane producers in Thailand are switching to cassava which is giving them better returns, said Czarnikow. This will result in lowering the area under cane cultivation by at least 5%, it said.
Thailand would export 2.5 million tonnes of sugar in 2023-24 which is the lowest since 2020-21, said the broker.
