Global sugar production may fall in 2013/2014

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The global sugar production in 2013/14 may drop to 178.7 million tons, compared with 180.1 million produced in 2012/13, announced the consultancy Kingsman. For the third consecutive year the production will be greater than the demand. According to the International Sugar Organization (ISO) global sugar surplus will fall to 6.2 million tonnes in 2013/14, compared to 10.31 million tonnes in the previous year.

Experts attribute the drop in production to low commodity prices in the international market, which are nearing production costs. In its report, the OIA said it believes that prices may remain bearish until the end of the current season, which ends in September.

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