Sugar production falls YOY as both milling capacity and stocks rise

India's sugar production in the 2019/2020 campaign fell 18.8%, totaling 26.465 million tons, against 32.619 million tons in the same period of the 2018/2019 season, according to the Association of Sugar Mills of India (ISMA). Isma pointed out that, until May 15th, 63 plants were still grinding cane actively, against 38 in the same period last year.

According to the entity, a total of 3.6 million tons of sugar was destined to exports, having Indonesia and Iran as the main destinations. Export contracts for 4.2 million tons have already been signed as shipments continue to happen and should be fully normalized in the upcoming days.

At the same time, the government is pushing the mills to direct the surplus of cane to ethanol production as a long-term solution to the sugar overstocks. He also asked that plants, banks and the World Trade Organization (WTO) to seek an agreement to better use state incentive policies to increase ethanol production in the following years.