KARACHI - Sugar production will rise in India, Pakistan, Russia and European Union EU member states and its global production likely to rise by about 5% to 172.8 million tonnes (mt) in 2011-12 marketing season, UN Food & Agriculture Organization FAO said. Global sugar production stood at 165.1 mt in 2010-11 marketing year (October-September). FAO's current estimate for world sugar production in 2011-12 stands at 173 mt, relatively unchanged from November 2011 forecast, but 4.6% larger than in 2010-11.
Downward revisions in output in Brazil, Mexico and United States were largely offset by upward revisions in EU, Russia and Pakistan. Developing countries are forecast to harvest 131 mt, 1.2% more than in 2010-11, led by rise in India and Pakistan, and in developed countries anticipated to expand by 17% to 42 mt.
Indian sugar production is pegged at 28.1 mt in current season from 26 mt in 2010-11 marketing season.
In Pakistan, FAO said sugar output is expected to rise to 5.2 mt in 2011-12 marketing season from 4.4 mt in the year-ago period.
FAO expects global sugar consumption to rise to 167.4 mt in current season on back of low prices and increased availability. Increased supply availability and lower prices are expected to support larger sugar intake than in previous season. In 2009-10 and 2010-11, high domestic sugar prices curtailed demand in virtually all regions.
World per capita sugar consumption will remain steady at 23.8 kg in 2011-12. Despite rising sugar consumption, global economic slowdown could hamper demand growth, according to FAO. "Aggregate sugar utilization in developing countries is set to expand by 2.4 mt to 118 mt, or 70.4% of global consumption. In generally more mature markets of developed countries, consumption is to increase by 1.3 mt.
"However, a slowdown of global economic growth in 2012 could undermine prospects for demand expansion, as manufacturing and food preparation sectors, which account for bulk of aggregate sugar consumption, are particularly sensitive to income changes," FAO report said.