On the back of higher production in current season and coming season amid huge carry over stocks, global sugar prices may drop drastically for 2013-14.
According to reports for various agencies, global sugar production for 2012-13 is expected to be around 177.6 million tons, while consumption is forecast to 169.5 million tons. Around 4.6 million tons of sugar is expected to remain as carry over stock for 2013-14.
In addition to it, the carry over stock also includes 8.1 million tons of 2011-12 and 1.7 million tons of 2010-11.
Presently, the price of the commodity in both global as well as domestic market is sliding over record production in Brazil and in India.
Brazil's Sugar production will likely remain steady at around 32.8 million tons and India's is expected to be around 26 million tons for 2011-12.
In Inter-Continental Exchange (ICE), sugar for July delivery up 0.04 cents to 19.62 cents per bushel on Friday and in India's National Commodity and Derivatives Exchange (NCDEX), the commodity for 0.42% to Rs 2826 per atl on Monday, 28th May at 16:05 IST.
Source: Commodity Online