FAO paints gloomy picture on sugar output in India

Font Size

Print

Feedback

Email

Discuss

New Delhi, May 31: Food and Agriculture Organisation (FAO) has forecast gloomy prospects for sugar production in India saying this could lead to a high import due to output shortfall.

"Sugar prices strengthened in 2004 and early 2005 reflecting a shortfall in supplies and which are forecast to continue in 2005, reflecting strong import demand and unfavourable production prospects in India," the Rome-based organisation said in its latest report.

It said preliminary harvest returns indicate a continued shortfall in supplies during 2005 largely due to a second consecutive year of unfavourable weather in Indian and rising import demand for both India and China, the FAO’s Food Outlook journal said.

As far as cotton is concerned, it said reduced planting of the crop is expected from India, Pakistan, China, Brazil and United States which are the world’s largest cotton producer. "This could lead to some recovery in cotton prices," it said adding, "however, to induce a significant uptrend the shift out of cotton production would have to be so large that only a modest price effect may be anticipated".