With a good monsoon rain forecast in India during 2017-18 season, the Sugar output in the country is expected to increase to 25 million tons.
The expected increase in production is likely to be near the consumption level in India, which will result in decrease of Sugar imports. The decrease in Sugar imports to India, the biggest consumer of Sugar will impact the global Sugar prices, which is already near the lowest in over a year.
After a severe drought during the 2015 season, India was forced to import about 0.5 million tons of Sugar during 2016-17 crop year ending September 30. Indian monsoon is expected to deliver normal rain during 2017.
The production drop in the major producing areas in India forced the government to lift the import duty on Sugar. Maharashtra, one of the major Sugar producing state in the country has seen a production drop of about 50 percent to 4.18 million tons in 2016-17, but in the next season the production is expected to increase by about 62 percent to 6.8 million tons.