Weather Woes to Crush India’s Sugar Production

Sugarcane yields in India are declining due to last year's drought and this year's excessive rains, which could reduce the country's sugar production below consumption levels for the first time in eight years. The production could fall to around 27 million metric tons from the last year's 32 million tons and below annual consumption of more than 29 million tons. When the monsoon season began, there was excessive rainfall and limited sunshine, which adversely affected the crop's growth. The western state of Maharashtra and neighbouring Karnataka, which together produce nearly half of India's sugar, received lower-than-average rainfall in 2023, bringing down reservoir levels. The downward revision in the production estimate has eliminated the possibility of any exports in the current season. Sugar industry seeks 2 million tons of exports, while the government says it may allow limited exports, if any surplus remains after ethanol needs are met.