London: Sugar production will rise 3% during the 2007-08 crop year, creating a global surplus of 11 million tonnes (mt), Czarnikow Sugar Ltd said.
Output will rise 5mt to 172.4mt on increased production from Asia, the London-based sugar broker said on Tuesday in its monthly review of the market.
Consumption will grow 4.3mt to 160.4mt, it said. Czarnikow said its forecast of 11mt surplus takes into account the potential “unrecorded disappearance” of supplies.
“Attractive” conditions in Uttar Pradesh have “initiated a huge swing” to the planting of sugar cane, Czarnikow said.
Indian growers may boost production by 3mt to 34.2mt in the new crop year, Czarnikow said. Indian sugar stockpiles may rise by 10mt to a record 25 mt.