Latest news with #sugarproduction
Zawya
a day ago
- Business
- Zawya
NSDC removing impediments to sugar production in Nigeria — Bakrin
The Executive Secretary/CEO of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin, has briefed critical stakeholders on the progress made by the council in addressing impediments to improved local sugar production in Nigeria. Speaking at a tripartite meeting of the agency, the Ministry of Industry, Trade and investment and the major BIP operators, the NSDC boss said the Council has elevated performance monitoring and oversight of the Backward Integration Programme (BIP) operators beyond what the Sugar Industry Monitoring Group (SIMOG) used to do. According to him, NSDC under his watch has emphasised robust, one-on-one, physical and virtual engagement with the operators, giving them targets and following up on deliverables. Bakrin said 'the operators have complained about the existing loopholes in the free trade zone regime, which they believe certain participants in the NSMP have exploited. 'They also cited delays in the clearing of equipment at the ports, smuggling of sugar into the country, host community resistance to the expansion of their BIP programmes as the primary causes of the delays in their BIP execution.' 'The loopholes in the FTZ regime are being addressed by the ongoing amendment of the NSDC Act by the National Assembly.' He explained that the amendment process involves engagement with the relevant National Assembly Committee, and key stakeholders among other objectives to address the concern of the BIP operators and also make the industry more attractive to other investors. 'The delays in the clearing of equipment at the ports is something that is also being addressed with the Nigeria Customs Service. On the issue of smuggling, the volumes do not significantly alter the economics of sugar production and the market dynamics. But regardless, we have engaged the relevant security agencies on the matter. 'In terms of host community resistance, the council consistently intervenes and has actually driven the resolution of these grievances, especially the more significant ones that have been experienced in places like Numan in Adamawa State, and this has been resolved. 'At the moment, there is currently no backward integration programme in which the host community has restricted access to a significant proportion of land in the country,' he added. The Executive Secretary also informed the gathering that as a Council, the NSDC is working on getting comprehensive financing support to aid the development of the industry and in addition to help the existing operators lower the cost of irrigation. 'One of the things we need to do is aggressive pushing of a sugar sector development fund, as well as securing the kind of guarantees that will allow the cost of borrowing to come down. 'Also, to possibly extend whatever support we can provide around the issues of irrigation facilities, not necessarily as grants, but just to lower the overall cost of irrigation infrastructure.' Emphasising the need for severe sanctions for underperformance, Mr. Bakrin said: 'We believe that the two critical things that must happen is that the operators must act immediately to stop the deterioration in the output of their current operations, especially around the issues of agronomic and factory practices, which are clearly below global norms and standards. 'They must also actively expand their existing brownfield operations. In addition, we believe that without going into the specifics of individual companies for confidential reasons, the operators need to, as a matter of urgency, take a much more aggressive approach to expanding their BIP programmes to ensure that they are able to deliver on the NSMP targets. 'We believe that basic improvements in agronomics and factory practices can take annual raw sugar production to 200,000 metric tonnes in the short term even from the current land planted with sugarcane,' he noted. The NSDC boss argued that while the business of importation of raw sugar and refining at the existing facilities owned by the major operators may seem profitable on the surface, the more challenging work of actually growing sugar cane and processing it in Nigeria is ultimately more sustainable and rewarding for the operators and the country at large. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Times of Oman
a day ago
- Business
- Times of Oman
Favourable monsoon to boost India's sugar output, prices will remain range-bound: CRISIL
New Delhi: India's gross sugar production is expected to rise in the sugar season (SS) 2026, helped by above-average monsoon, boosting cane acreage and yields in key sugar-producing states such as Maharashtra and Karnataka, according to a report by Crisil. The Crisil report estimates that sugar production is expected to rise by about 15 -35 per cent to 35 million tonnes. This surge is expected to boost sugar mills and give some relief from the trifecta of challenges, such as high cane costs, subdued ethanol prices and muted exports that compressed their operating profitability by about 200 basis points (bps) to 8.7-9 per cent in FY2025. With improved supplies and potentially higher diversion of sugar for ethanol blending with gasoline, the operating margin of sugar mills is likely to recover to about 9-9.5 per cent in FY 2026. This is likely to support the credit profiles of sugar players, which saw some pressure last fiscal. Additionally, diversion for ethanol is expected to rise to nearly 4 million tonnes, supported by high sugar output and the government's 20 per cent blending target, as it offers faster cash-flow churn. "The strategic diversification to ethanol was intended to de-risk the earnings and cash flow of sugar mills. But rising cane costs (cane FRP has been hiked by 4.5 per cent to Rs 355 per quintal for SS 2026) and stagnant ethanol procurement prices have limited improvement in profitability," said Anuj Sethi, Senior Director, Crisil Ratings. The report adds that despite this 15 per cent rise in sugar production, margins of integrated millers will improve only marginally. "As a result, the operating margin of integrated millers is likely to improve only marginally by 40-60 bps to 9-9.5 per cent despite a 15 per cent jump in sugar output. That said, standalone millers, lacking distillery or cogeneration power sales, may continue facing margin pressure," noted the report. On the domestic price side, sugar prices have held steady at Rs 35-38 per kg this season. With output expected to rise, sugar prices are likely to remain range-bound, limiting any significant upside in the profitability of sugar millers.
Yahoo
20-06-2025
- Business
- Yahoo
Sugar Prices Slump to 4-Year Lows on the Outlook for Abundant Global Supplies
July NY world sugar #11 (SBN25) Wednesday closed down -0.20 (-1.24%), and August London ICE white sugar #5 (SWQ25) closed up +3.80 (+0.82%). Sugar prices on Wednesday extended their 3-month-long slide and posted 4-year nearest-futures lows. The outlook for improving global sugar supplies is weighing on prices. However, fund short covering on Wednesday lifted London sugar off its lows and into positive territory. Grains, Unrest, & Gold: What Middle East Tensions Mean for Your Portfolio Now Coffee Prices Plummet on an Improved Supply Outlook Can Soybean Prices Keep Trending Higher? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Sugar prices have fallen over the past 3-months due to expectations of a global sugar surplus. On May 22, the USDA, in its biannual report, projected that global 2025/26 sugar production would increase by +4.7% year-over-year (y/y) to a record 189.318 million metric tons (MMT), with a global sugar surplus of 41.188 MMT, up 7.5% year-over-year. The outlook for higher sugar production in India, the world's second-largest producer, is bearish for prices. On June 2, India's National Federation of Cooperative Sugar Factories projected that India's 2025/26 sugar production would climb +19% y/y to 35 MMT, citing larger planted cane acreage. The outlook for abundant rainfall in India could lead to a bumper sugar crop, which is bearish for prices. On April 15, India's Ministry of Earth Sciences projected an above-normal monsoon this year, with total rainfall forecast to be 105% of the long-term average. India's monsoon season runs from June through September. Signs of larger global sugar output are negative for prices. On May 22, the USDA's Foreign Agricultural Service (FAS) predicted that Brazil's 2025/26 sugar production would rise +2.3% y/y to a record 44.7 MMT. Also, India's 2025/26 sugar production is projected to rise +25% y/y to 35.3 MMT, citing favorable monsoon rains and increased sugar acreage. In addition, Thailand's 2025/26 sugar production is expected to climb +2% y/y to 10.3 MMT. In a bearish factor, the Indian government said on January 20 that it would allow its sugar mills to export 1 MMT of sugar this season, easing the restrictions placed on sugar exports in 2023. India has restricted sugar exports since October 2023 to maintain adequate domestic supplies. India allowed mills to export only 6.1 MMT of sugar during the 2022/23 season to September 30 after allowing exports of a record 11.1 MMT in the previous season. However, the ISMA projects that India's 2024/25 sugar production will fall -17.5% y/y to a 5-year low of 26.2 MMT. Also, the ISMA reported last Monday that India's sugar production from Oct 1-May 15 was 25.74 MMT, down -17% from the same period last year. In addition, Indian Food Secretary Chopra said on May 1 that India's 2024/25 sugar exports may only total 800,000 MT, below earlier expectations of 1 MMT. The outlook for higher sugar production in Thailand is bearish for sugar prices. On May 2, Thailand's Office of the Cane and Sugar Board reported that Thailand's 2024/25 sugar production rose +14% y/y to 10.00 MMT. Thailand is the world's third-largest sugar producer and the second-largest exporter of sugar. Sugar prices have some support from reduced sugar production in Brazil. Unica reported Monday that cumulative 2025/26 Brazil Center-South sugar output through May is down by -11.6% y/y to 6.954 MMT. Last month, Conab, Brazil's government crop forecasting agency, said 2024/25 Brazil sugar production fell -3.4% y/y to 44.118 MMT, citing lower sugarcane yields due to drought and excessive heat. The International Sugar Organization (ISO) raised its 2024/25 global sugar deficit forecast to a 9-year high of -5.47 MMT on May 15, up from a February forecast of -4.88 MMT. This indicates a tightening market following the 2023/24 global sugar surplus of 1.31 MMT. ISO also cut its 2024/25 global sugar production forecast to 174.8 MMT from a February forecast of 175.5 MMT. The USDA, in its bi-annual report released May 22, projected that global 2025/26 sugar production would climb +4.7% y/y to a record 189.318 MMT and that global 2025/26 human sugar consumption would increase +1.4% y/y to a record 177.921 MMT. The USDA also forecasted that 2025/26 global sugar ending stocks would climb +7.5% y/y to 41.188 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Zawya
09-06-2025
- Business
- Zawya
India faces two years of sugar surplus, growers and officials say
SATARA, India - 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.
Reuters
09-06-2025
- Business
- Reuters
India faces two years of sugar surplus, growers and officials say
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.
