Sugar Falls to Seven-Month Low on Signs of Rising Indian Output

Sugar prices tumbled to a seven- month low on signs of higher output in India, the world’s biggest consumer and second-largest grower.

Production may rise 5 percent from an earlier forecast to 16.8 million metric tons in the year ending Sept. 30 because of higher yields, Vivek Saraogi, the president of the Indian Sugar Mills Association, said today. Raw-sugar futures in New York dropped 5.8 percent, the most in two weeks.

“If the quantity of sugar people are talking about materializes, then the supply situation will ease,” said Edward Makin, the chief executive officer of Lantic Inc., a Canadian sugar producer. “There has already been a healthy correction.”

Sugar futures for May delivery dropped 1.25 cents to 20.32 cents a pound on ICE Futures U.S. Earlier, the most-active contract touched 20.22 cents, the lowest price since Aug. 7. The commodity has plunged as much as 33 percent since reaching a 29- year high of 30.4 cents on Feb. 1.

Thailand, the second-largest exporter, may harvest a record crop next year after farmers boosted planting, the Thai Sugar Millers Corp. said yesterday.

Futures more than doubled last year as adverse weather curbed output in India and Brazil, the world’s biggest producer.

By Debarati Roy
Source: Bloomberg