India May Import Sugar As Yield Sinks

India's sugar output this crop year, affected by weak rains, is set to lag behind consumption for the first time in seven years, as reported by Rajendra Jadhav for Reuters.

Lower plantings, driven by falling yields in two key producing states, Maharashtra and Karnataka, may even force the world's No. 2 producer to import in the following year.

Lower plantings, driven by falling yields in two key producing states, Maharashtra and Karnataka, may even force the world's No. 2 producer to import in the following year.

The sluggish outlook for the crop year that began in October reinforces expectations that India will ban sugar exports in 2024. Sugar output could be even lower in the next crop year, extending to September 2025.

Low reservoir levels in Maharashtra and Karnataka, which together produce nearly half of India's sugar, are leading many farmers to plant crops that require less water and mature faster than cane, such as sorghum and chickpeas.

Reuters' survey of over 200 farmers showed output could decline this crop year and the next, aligning with traders' internal forecasts. Consumption is expected to rise over the same period. India currently supplies 12% of globally-traded sugar.

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