SUGAR REPORT | 11.02.2020 | NEWS FROM WORLD MARKET
- India sugar output for 2019-20 unlikely to see big revision - ISMA - Reuters - Indian sugar production estimates for the 2019-20 are unlikely to be revised significantly upwards from 26 million tonnes when the Indian Sugar Mills Association (ISMA) meets to review figures, the trade body said on Tuesday. Vivek Pittie, president of ISMA, told an industry conference in Dubai that the meeting will be held on Feb.25. "If you ask me, I don't see significant upward revision," he said. Sugar production in India, which vies with Brazil as the world's biggest sugar producer, was hurt by drought in 2018 that forced farmers to curb cane planting, while flooding damaged crops in key growing regions in 2019. As a result, the trade body has said that the country's 2019-20 sugar output could fall 21.6% to 26 million tonnes, the lowest level in three years. For its output estimate, ISMA took into account production from Maharashtra at 6.2 million tonnes. But it could be revised slightly upwards to 6.5 million tonnes, Pittie said.
- Brazil sugar sector to consolidate despite improved outlook – Reuters - Brazilian mills have been buoyed by rising sugar prices, low interest rates and strong demand for cane-derived ethanol but there is still scope for consolidation as some will continue to struggle, the annual Dubai sugar conference was told on Monday. Around a third of Brazil's mills are in a "vicious circle" with their credit restricted and needing to sell their ethanol as soon as it is produced, said Andy Duff, Rabobank's global sugar strategist. "They end up having higher costs and lower revenues...They are in a downward spiral. They end up losing independent cane suppliers who feel safer may be with a neighbour in a better financial position," Duff said. "That is why there is this silent consolidation where you have this migration of cane from poorer players to better players. "In contrast, around a third of Brazil's mills are in a "virtuous circle", he said.
- Egypt's Canal Sugar to start production in 2021 – Reuters - Egypt's Canal Sugar will produce 400,000 tonnes a year of white sugar when it starts production in the 2021 season, the chief executive said on Monday. Construction of the company's sugar beet factory will be completed this year and the project will reach full capacity of 900,000 tonnes of white sugar a year in 2023, Islam Salem told reporters on the sidelines of an industry event in Dubai. Planting will begin in late October for the 2021 harvest. Once the project's full agricultural capacity is reached, it will produce half of its sugar from the beets it grows, with the remainder provided by local farmers, Salem said. The west Minya project aims to establish the world's largest beet sugar plant and the sugar produced will be sold in the local Egyptian market, which faces a deficit, Salem said.