Increased planting in the globe's second-largest producer of sugar is likely to result in the nation's biggest production of the soft commodity in the past four years, Bloomberg reports.
Indian exports of the sweetener likely will increase as well as production drives to 25.83 million metric tons for year beginning October 1, according to information provided by 10 Indian states. Those states include Uttar Pradesh and Maharashtra, the two biggest-producing states. Brazil, the globe's top producing nation, is set to reduce its production due to lacking supplies.
"India will be in a better position to export sugar in a sizable quantity as supplies increase," managing director Yatin Wadhwana of Sucden India told Bloomberg.
At 2 p.m. on Tuesday, sugar futures increased 0.3 percent, a 0.0008 cent gain to 26.79 cents per pound.
As the top-producing Indian state, Uttar Pradesh is set to process 70 million tons of sugarcane, which will make 6.45 million tons of sugar, according to the sugarcane commissioner of the state.
Reuters reports the sweetener's drive higher was propelled by physical market demand.
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