Sugar supply and Demand in the World

Dr. Biswas
Dr. Biswas

During September 7-8,2017, KJ attended Kingsman Sugar Conference at hotel Andaz, Aerocity, New  Delhi.The plan here is to deal with the world sugar Supply & Demand situation on the basis of information collected in the conference.

Sugar is produced from sugarcane in the tropical world (Brazil, India, Thailand, Indonesia, Australia, Africa, etc ) while in the temperate  world ( Europe, North America, CIS countries etc) sugar beet is the raw material. Roughly 60% of world sugar is produced from sugarcane while about 40% of sugar is produced from sugar beet.  Experiment conducted at Indian Agriculture Research Institute (IARI—PUSA Institute) showed that sugar beet could be produced in India during winter season which is the main wheat growing season in India. Therefore, crop competition is the main issue in growing sugar beet in north India.

Brazil is number one sugarcane growing country in the world while India ranks second in sugarcane production. Out of total 179.3million tonnes (mt) sugar, Brazil and India have the lion share in the world sugar production. Brazil also produces bio-fuel from sugarcane. It tops in bio-fuel production in the world.

This year India has surplus sugar production. Uttar Pradesh has the highest area under sugarcane in India. But the productivity is the highest in South India. In North India, the duration of crop is 12 months while in  South India it is 18 months. New young CM of UP  is ever willing to help  the farmers. UP has also introduced new Cane variety of CO-238 which is high yielding than old varieties.

Pakistan also has good production of sugarcane in the recent years while China is deficit in sugar production. Thailand, Indonesia, Australia also contributes sugar in the International Market.

African situation is not good. About 43 countries of Africa is food deficit, they are also sugar deficit. India has a key role to play in food and sugar production in Africa which imports sugar from India.

European Union (EU) has stable sugar production. In CIS countries  the low price of sugar  is detrimental to attract the farmers to go in for higher production.

In the current year  about 4.7mt of sugar is available  for trading  in the international market.  In India crop competition  is serious issue. As area under sugar cane can not  be increased,  the productivity  increase is  the only option left.

Labour problems is also   a serious issue. Therfore, India has to go in for  higher use of  machineries in sugarcane production. Sugarcane requires higher amount of water which  also  may reduce the area under sugarcane in the country. In near future sugar price would determine the sugar production of the world. Brazil would have  general election in next year while India would have parliamentary election in 2019.

So  sugar policy in this countries would be framers’ friendly.

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