World Sugar production to hit a record high in 2017/18 (October/September) and surpass consumption, with the anticipated surplus likely to be the largest in history, the United Nations' Food and Agricultural Organisation (FAO) said in its latest report.
World Sugar production is forecast to rise 11.1% this year, reaching record level of 187.6 million tonnes.
Decreases in Sugar output in Brazil and Australia are predicted to be offset by expansions in India, the EU, Thailand, and China, FAO said.
World Sugar consumption is set to grow in line with its long-term trend, reflecting increases in several developing countries sustained by lower domestic Sugar prices, ample domestic availabilities and improved economic performance. Sugar consumption growth will be particularly marked in Africa, Asia and South America, the report said.
Although Sugar prices have been steadly falling since mid-2017, rising international Crude Oil prices will indirectly prop up Sugar prices as the crop is used to make ethanol for biofuel instead of Sugar for food, FAO said.