India is likely to become a net importer of sugar this year, for the first time in last four year, owing to parched fields. Back-to-back drought years have dried irrigation channels and severely affected key cane plantation in Maharashtra, leaving the country’s biggest producing state see a drop of 40 per cent in the output.
The bad news for India is, however, turning out to be good for rival producers Thailand, Brazil and Pakistan who are ramping up their shipments from their ports.
“India will need to import next year due to a production shortfall. The government should stop exports now to reduce import requirements in the next season,” Ashok Jain, President of the Bombay Sugar Merchants Association (BSMA), told Reuters.
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Maharashtra has been reeling under dry weather conditions since October where reservoirs have gone dry and water scarcity is posing a threat to several lives. Latur, Beed and Bundelkhand are some of the areas that are relying on water tankers and water trains for a drop of water.
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“Next year, Maharashtra’s production could drop below 5 million tonnes. This may pull down the total output to 22.5 million tonnes,” said B. B. Thombre, President of the Western India Sugar Mills Association. Next season’s local consumption is pegged at around 26 million tonnes.
The world’s biggest sugar consumer is set to churn out 25.7 million tonnes in the current season, with Maharashtra contributing 8.5 million tonnes. Indian mills are contracted to export nearly 1.5 million tonnes this season.
Image Credit: Bloomberg.com
