Sugar prices are nominated to rise with an expected decrease in the production of India

The sugar market is expected to be further restriction on the decline in production in India, the second largest producer in the world, threatening to rise in immediate supply prices. India’s production can decrease to 26 million tonnes during the current season, after the plagues hit the Cane crop in Utuka Pradesh, the country’s highest productive region, according to Ravi Gobta, CEO of the major sugar production company, “Shreta Renuka Sugars Ltd” on the sidelines of the Dubai Sugar Conference last week. These estimates are less than about one million tonnes of the average industry forecast eradicated during the conference. Although global sugar production is expected to recover in the next season, which starts in October, which can push the market to a surplus, the supplies may remain limited in the short term, as Thailand’s production, another important product, is expected to be less than usual this season. As a result, the futures for white sugar has risen by more than 8% since the beginning of this month. Read more: Expectations of international sugar supplies to fall to the lowest level in 6 years, a strong demand for white sugar. Gupta said: “I see a strong demand for white sugar with the decline in supplies from the European Union and Thailand,” adds: “We take note of the possibility of serious weakness in the Pakistan crop, which can push it to cover white sugar to cover the question.” He pointed out that the scarcity of refined sugar supplies would lead to a high price lounge compared to raw sugar after a period of low prices. Last January, the Indian Mills government allowed the export of up to one million tonnes this season, which eliminated the restrictions imposed on foreign sales for more than a year. However, the delivery rate was slow; Where manufacturers are waiting for high prices in the world market. Gobta explained that international sugar prices should remain more than $ 530 a tonne to stimulate exports, adding: “To export a million tonnes, the world market must move to increase the price of Indian sugar.” Prices rose white sugar by 1.5% to $ 545.4 per tonne in London, while the markets were closed in New York due to an official holiday in the United States. Robosta’s coffee futures increased by 0.3%.