logo
India faces two years of sugar surplus, growers and officials say

India faces two years of sugar surplus, growers and officials say

Reuters2 days ago

SATARA, India, June 9 (Reuters) - India is set to produce surplus sugar for at least two consecutive years, as millions of farmers expand the area under sugarcane cultivation amid ample rainfall, boosting crop yields, growers and industry officials said.
The rebound in production would allow the world's second-largest sugar producer to increase exports in 2025/26, they said, after poor rainfall cut sugarcane yields and led to two years of export restrictions.
"Sugarcane usually gives us good returns, but sometimes we can't plant it due to a lack of water," said Umesh Jagtap as he planted the crop on a three-acre plot in Maharashtra, a leading sugar producing state in the west.
"This year, we had heavy rain in May, and the forecast says more rain is on the way. So we're planning to plant more than usual."
Farmers from Maharashtra and neighbouring Karnataka struggle to irrigate their sugarcane crop in May. This year, however, Maharashtra and Karnataka received 1,007% and 234% more rainfall than average, respectively.
The rainfall will benefit the crop to be harvested in the 2025/26 season, starting October, and will also support planting for the 2026/27 harvest, said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories (NFCSF).
Sugarcane typically takes 10 to 18 months from planting to harvest. As a result, farmers who began planting this month are expected to harvest their crop during the 2026/27 season.
The NFCSF estimates gross sugar production in 2025/26 to rise by nearly a fifth from a year earlier, reaching 35 million metric tons.
For the 2024/25 marketing year to September, India's net sugar production is expected to fall below consumption for the first time in eight years.
This decline stems from a 2023 drought that hit sugarcane planting and forced India to prohibit sugar exports in 2023/24 and allowing merely 1 million tons in 2024/25.
India was the world's No. 2 sugar exporter during the five years to 2022/23, with volumes averaging 6.8 million tons annually.
"Looks like production is set to bounce back strongly, so New Delhi will probably have no trouble allowing exports of over 3 million tons in the next season starting October," said a Mumbai-based trader with a global trade house.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

US-loaded ethane vessel heads to India after China export curbs
US-loaded ethane vessel heads to India after China export curbs

Reuters

time7 hours ago

  • Reuters

US-loaded ethane vessel heads to India after China export curbs

HOUSTON, June 11 (Reuters) - An ethane tanker that loaded in the United States headed to India on Wednesday, ship tracking data showed, after Washington required U.S. exporters to seek licenses to ship the shale gas to top buyer China. Around half of all U.S. ethane exports head to China, where it is used by the petrochemical industry. The vessel's change in destination underscores how the fallout from trade tensions between the United States and China is shifting ethane flows. Liberia-flagged STL Qianjiang, which loaded at Energy Transfer's (ET.N), opens new tab Nederland terminal for China's Satellite Chemical ( opens new tab, signaled Dahej, a port on the West Coast of India, as its destination, according to LSEG and Kpler ship tracking data. The final buyer of the cargo is India's Reliance Industries ( opens new tab, Kpler data showed, citing the vessel's bill of lading. The ship has traversed only between the United States and Satellite Chemical's Lianyungang petrochemical facility since July 2022, according to historic data on Kpler. Energy Transfer, Satellite Chemical and Reliance did not immediately reply to a request for a comment. Energy Transfer and Enterprise Products Partners (EPD.N), opens new tab, two of the top U.S. ethane producers and exporters, said they have received letters from the U.S. Commerce Department requiring the companies to apply for a license to ship ethane to China. Enterprise said it also received a notice from the U.S. government of its intent to deny emergency requests for three proposed export cargoes of ethane totaling around 2.2 million barrels to China. Chinese petrochemical firms use ethane as a feedstock because it is a cheaper alternative than naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand.

India set for electricity futures trading as NSE becomes 2nd exchange to get nod
India set for electricity futures trading as NSE becomes 2nd exchange to get nod

Reuters

time8 hours ago

  • Reuters

India set for electricity futures trading as NSE becomes 2nd exchange to get nod

June 11 (Reuters) - India's National Stock Exchange ( opens new tab on Wednesday became the second exchange in a week to secure regulatory approval to launch electricity futures contracts, a move experts say could help struggling power utilities improve their finances. The Multi Commodity Exchange of India (MCX) ( opens new tab received a similar approval last week from the Securities and Exchange Board of India (SEBI). A futures contract will allow the purchaser to secure power at a fixed price at a later time. Currently, Indian utilities rely heavily on long-term power purchase agreements (PPAs) spanning up to 25 years for baseload requirements, supplemented with short-term purchases through power exchanges for peak demand. Distribution companies (discoms) in India owed about $9.5 billion in unpaid dues, according to the government, driven by expensive long-term power purchases, subsidised supply, and electricity losses due to poor infrastructure. "There is clearly an incentive from now on to not lock yourself into a 25-year contract and rather look at shorter terms," said Ashutosh Padelkar, Senior Associate at Aurora Energy Research. Globally, power derivatives are traded on CME Group (CME.O), opens new tab, Euronext, the Intercontinental Exchange and European Energy Exchange ( opens new tab, among others. "Discoms will gain the ability to use forward curves to plan procurement more dynamically... This can help optimize costs, avoid overcontracting, and improve demand forecasting," said Sanjeev Aggarwal, chairman of Hexa Climate Solutions. A forward price curve helps in predicting the expected electricity price in the future. Discoms currently sell solar surplus at low daytime prices, but can now use derivatives to sell at pre-agreed higher rates during that period. They can also buy electricity at lower prices during non-solar hours using the contracts, when spot prices typically surge. Even power producers can hedge by taking opposite positions in the derivative markets using the forward price curve, said Aditya Malpani, a senior director at power producer AMPIN Energy Transition.

Maruti Suzuki's new 'Dzire' secures 5-star safety rating in India
Maruti Suzuki's new 'Dzire' secures 5-star safety rating in India

Reuters

time9 hours ago

  • Reuters

Maruti Suzuki's new 'Dzire' secures 5-star safety rating in India

June 11 (Reuters) - Maruti Suzuki ( opens new tab secured a five-star safety rating for its popular 'Dzire' small car, India's transport minister said on Wednesday, marking a milestone for the country's largest carmaker that has for long lagged its rivals in safety. Its upgraded 'Dzire' model, launched in November, secured the highest rating of five stars under India's local safety standard, Bharat New Car Assessment Program (NCAP), the first such Maruti model to hit the milestone. As part of its efforts to catch up to local rivals, Maruti has said it would fit all its cars with six airbags from April, as Indian buyers seek safer options. Smaller rivals Tata Motors ( opens new tab and Mahindra ( opens new tab already have several Bharat NCAP five-star rated cars in their lineup. "It's heartening to witness mainstream models setting new benchmarks in vehicle safety," India's Transport Minister Nitin Gadkari said in a post on X.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store