>World sugar production to rise 3.5pc - FAO

Mumbai - World sugar production is expected to recover by 3.5 percent to 156.3 million tons in 2009-10, largely due to relatively favourable growing conditions and high returns, a recent report of Food and Agriculture Organisation 'Global Food Outlook' cited.

In 2007-2008 it was 167.6 million tons, up 151.1 million tons in 2008-2009.

Nevertheless, global output is still to remain short of consumption for the second consecutive year, with the deficit foreseen in the order of 6.3 million tons.

The report apprised that world trade is expected to grow by 12 percent this year, sustained by strong import demand in India, where consumption would outstrip production by 7 million tons. It would be around 53.3 million tons this year which is 5.8 million tons more than the last year. In 2007-08 it was 47.3 million tones.

It also forecasted an increase in utilization of sugar by 1.8 million tons or 1.1 per cent. It is expected to be around 162.6 million tons in the current year. In 2007-08, it stood at 158.7 million tons.

“Also, global reserves are set to decline to about 54.4 million tons, which is 9.8 million tons below the ten-year average. Ending stocks in 2007-08 accounted for 74.8 million tons and in 2008-09 it was 60.9 million tons”, FAO added.

This year, per capita consumption will decrease by 100 gram. In 2008-09, per capita consumption of essential commodity was 23 kg per year while it was 22.9 kg per year in 2007-08.

According to the report, preliminary projections for the year 2010-11 indicate a small production surplus for the first time since 2007-08, providing some downward pressure on prices. In May, prices averaged US 15.10 cents per pound, down 42.93 percent from their highs of US 26.46 cents per pound in January 2010.

Source: COMMODITIESCONTROL