GLOBAL sugar exports are tipped to rise on the back of surging production levels, maritime analysts Banchero Costa have reported.
BC noted research from the Food and Agriculture Organization showing world sugar production could hit a record 187.6m tonnes this year due to higher output in India, Thailand, the European Union and China.
“While India has struggled to export its large surplus this season due to low global prices, their supplies are largely still expected to make its way to the global market, with some discussions with China to ship 1-1.5m tonnes of raw sugar,” BC reported.
“Thailand, the second largest sugar exporter, is expected to increase exports due to abundant sugar stocks, while the EU could soon become the fourth largest sugar exporter following the removal of their long-standing sugar quota regime in Sep 2017.”
Brazil is the world’s largest sugar producing and exporting country however, cane volumes are tipped to fall from aging cane fields and severe drought.
Meanwhile China has begun levying extra tariffs on out-of-quota sugar imports from all origins.
In Australia, up to 35m tonnes of sugarcane is grown each year, according to the Australian Sugar Milling Council.
The sugarcane crop can produce up to 4.5m tonnes of raw sugar, one million tonnes of molasses and 10 million tonnes of bagasse annually.
About 85% of the raw sugar produced in Queensland is exported, generating up to $2bn in export earnings for Queensland.
Production from the New South Wales sugar industry is refined and sold on the domestic market, according to the ASMC.