Sugar production in Uttar Pradesh, India's biggest grower, may gain this year because of higher cane yields, helping ease a global deficit that drove prices to near a three-decade high, a producers' group said.
Output may be 4.2 million metric tons in the crop year that started Oct. 1, up from 4.05 million tons last year, said Shyam Lal Gupta, secretary general of the Uttar Pradesh Sugar Mills Association. Production may climb at least 20% in the 2010-2011 season as plantings increase 30%, he said.
India is buying sugar for a second year to meet a deficit forecast at 7 million tons by Kingsman SA after a drought last year forced farmers to plant less cane. Global demand will top supply by 14.8 million tons this season, more than 13.5 million tons forecast previously, Czarnikow Group Ltd. said yesterday.
"Mills in Uttar Pradesh will certainly make up for the shortfall as cane yields are higher and recovery is improving," Gupta said in a phone interview from New Delhi. "Production will substantially improve next year as farmers are planting more area to the crop."
Production was 3.45 million tons in the Oct. 1 to Feb. 15 period, 1.7% less from a year earlier after a cane-price dispute delayed the start to the season, Gupta said.
Source & Full Article BloombergUTV
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