Sugar Production in Maharashtra, India, Forecasted to Decline by 14% In the 2023/24 Season

Sugar prices in India are expected to increase due to a severe drought in Maharashtra, the country's top sugar-producing state. The 2023/24 crop year could see a 14% drop in sugar production, the lowest in four years. This could exacerbate food inflation concerns and discourage the Indian government from allowing sugar exports. The situation could also support global sugar prices, trading near their highest levels in over a decade. However, higher domestic sugar prices could benefit leading producers like Balrampur Chini, Dwarikesh Sugar, Shree Renuka Sugars, and Dalmia Bharat Sugar, as they could see improved profit margins and timely payments to farmers.