India's Sugar Output Could Drop 15% As Drought Hits
India's sugar production could fall as much as 15% in 2019/20 from the year before as severe drought hits a key growing region, industry sources told Reuters.
The drop would ease pressure on Indian sugar mills to export surplus sugar, likely supporting global prices that fell more than 20% last year, partly due to subsidised shipments from the country.
The world's No.2 producer of the sweetener could churn out 28 to 29 million tonnes in the 2019/20 crop year starting from October, down from 33 million tonnes this year, said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd (NFCSF).
"The cane area has fallen drastically in Maharashtra due to drought. The water scarcity could also hit cane yields," he said.
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