Production of sugar in the second-largest generator of the soft commodity is poised to increase for the first time in three years as farmers are boosting planting, according to Bloomberg.
Trailing only Brazil for production of sugar, India is set to see generation rise by 5 percent to 25 million metric tons for harvesting season staring October 1, managing director M.G. Joshi with the National Federation of Cooperative Sugar Factories Ltd., noting two regions – Uttar Pradesh and Maharashtra – will see particular increases in production. That federation accounts for nearly half of the sugar produced in the subcontinent.
"Farmers are opting for cane even if they are getting lower prices this year as there is assured demand and return for the crop," managing director Sanjeev Babar with Maharashtra State Cooperative Sugar Factories Federation told the news source on Thursday. "Reservoirs are full and good rainfall last year has improved moisture in soil."
At 9:01 a.m. on Thursday, sugar futures advanced 2.07 percent, a 0.0036-cent increase to 0.1772 cents per pound.
Reuters reports U.S. agribusiness firm Cargill Brazilian counterpart Copersucar are poised to establish one of the world's biggest sugar traders.
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