Sugar production in India in 2018/19 could rise by 1.5 percent to a record 33 million tons, which will increase inventories of the second largest producer in the world and put pressure on local prices, the Indian Sugar Association (ISMA) said in a statement. made on friday 3 may.

Record production could force New Delhi to continue stimulating foreign sugar sales in the next season, which will depend on world prices, which are currently trading near their lowest levels in four months.

Years of unprecedented reed crops and record sugar production have affected domestic sugar prices, making it difficult for processors to pay the money owed to farmers. Indian sugar mills owed 50 million farmers a record $ 4.38 billion in debt.

To reduce debt, fast-growing stocks, New Delhi provides processors with various incentives to sell sugar abroad. The goal is to bring export sales to the level of 5 million tons.

However, according to ISMA estimates, due to falling world prices, in the current marketing year, the mills will be able to export only 3 million tons of sugar. This means that the level of sugar reserves in India will increase to 14.7 million tons at the beginning of the new season on October 1, 2019, which is 37.4 percent more than a year ago.

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