Sugar and Sweeteners Outlook No. (SSSM-260-01) 20 pp

April 2010

Indian Sugar Sector Cycles Down, Poised To Rebound

This report describes and analyses the current situation and outlook for supply, demand, and trade of sugar by India, the world's second largest sugar producer. A decline in sugar production has shifted India from net exporter to net importer during 2009/10, contributing to a runup in global sugar prices. A key finding is that the production decline is primarily due to a policy-induced cycle that is becoming increasingly pronounced. While output is poised to rebound in 2010/11, moderating future cyclical swings in output and trade may hinge on the success of a dialogue on policy reform between the government and the sugar industry.

Keywords: India, sugarcane, sugar, policy, supply, demand, trade, production cycles

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