India is the world’s second-largest sugar producer. However, due to scanty rains, its sugar output is expected to fall by 8% this year. The drop in output has led the government to cap sugar exports at 6.1 million tonnes, down from 11 million tonnes last year.
This decline in sugar output is a significant blow to farmers who are already facing challenges such as rising input costs and low prices. Moreover, it is likely to impact the global sugar market as India is a major supplier worldwide.
The Indian Sugar Mills Association (ISMA) predicts that the country’s sugar output this year will be 32.8 million tonnes, compared to 35.8 million tonnes the previous year. The decline is attributed to various factors, including the impact of scanty rains on sugarcane yields.
To tackle the decline in sugar output, the government has taken measures such as providing financial assistance to farmers and increasing sugar imports. However, the effectiveness of these measures in offsetting the output decline and ensuring sufficient sugar supplies remains uncertain.
The decline in sugar output is also expected to have ripple effects on the global sugar market. With India’s reduced output, sugar prices in the global market are likely to rise. This may benefit sugar producers in other countries but could burden consumers who will have to pay more for sugar.
The decrease in sugar output in India highlights the challenges faced by the country’s agricultural sector. Farmers are grappling with rising input costs, low prices, and unpredictable weather patterns. These challenges not only affect their livelihoods but also pose risks to the country’s food security.
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