London: The global sugar glut may take as long as two years to erode because of record crops in India and Brazil, the International Sugar Organization (ISO) said.
Supply will probably outpace demand by 11 million tonnes (mt) this year, Sergei Gudoshnikov, senior economist at the London-based group, said on Wednesday. That’s equal to about 7% of annual consumption.
“It’s very difficult to be optimistic. It could take between 18 and 24 months before the balance could be re-established,” he said.
White, or refined, sugar prices have slumped more than 40% since reaching a record in May last year. The gains prompted sugar-cane farmers in India and Brazil, the world’s biggest producers, to increase output.
India may produce a record 30mt of sugar this year, Gudoshnikov said. The country is expected to export as much as 4.5mt from the harvest that ended in September. Bloomberg