Sugar in key regions under threat due to bad rains

In a recent interview, the Managing Director of the Federation of Maharashtra Cooperative Sugar Mills, Sanjay Khatal, expressed serious concern about the current state of sugar cane in the region. According to him and the meteorological service, some areas of Maharashtra received 20% less rain than usual. This could negatively affect the overall level of sugar production in the country, which, in turn, will increase pressure on already rising food prices, writes Bloomberg.

According to Aditya Jhunjhunwala, president of the Sugar Mills Association of India, there are no formal talks with the government to cut sugar exports yet. However, such a possibility is not ruled out, especially in view of the upcoming elections.

India is the second largest sugar producer in the world after Brazil. Any shortfall in production could cause global fluctuations in the sugar market, including higher prices for sugar futures in New York and London.

Even though 94% of India's sugarcane acreage is irrigated, rain is still needed to replenish groundwater and reservoirs. According to the state Water Commission, water reserves in the country's 146 major reservoirs are 21% less than a year ago.

The situation is particularly tense in Karnataka, India's third largest sugar producer. This year's harvest is expected to fall by 20% due to lack of rainfall.

Under these circumstances, experts are calling for additional water conservation measures and effective export planning to ensure stability in both the domestic and global sugar markets.