ISO revises global sugar deficit for 2008-09

The International Sugar Organization (ISO) has revised the global sugar deficit at 7.5 million to 7.8 million tons for the year 2008-09, up from a previous estimate of a 4.3 million tons shortfall, on account of expected lower production in India and China, reports Economic Times.

The ISO, in its latest market report has forecasted sugar import demand for India to stand at 2.4 million tons in 2008-09 (October-September). A shift from cane plantings, driven partly by higher returns from alternative crops, contributed to a drop in India`s production in 2008-09, the report said. The industry believes that the sugarcane area may rebound by 20-25% this year as farmers boost sugarcane plantings to benefit from a rally in prices, it added.

The ISO said sugar production in China had also been disappointing in 2008-09, noting that the China Sugar Association had put the crop at 12.3 million tons, down from 14.8 million tons in the previous season. The main reason for the decline is lower yields as a result of last year`s severe frost in the main cane-growing provinces and lower fertilizer use, it added.

source: myiris