Supply will probably outpace demand by 11 million metric tonnes this year, Sergei Gudoshnikov, senior economist at the London-based group, said today in an interview. Thats equal to about 7% of annual consumption.
It cannot be absorbed in a matter of weeks or even months, Gudoshnikov said. Its very difficult to be optimistic. It could take between 18 and 24 months before the balance could be re-established.
White, or refined, sugar prices have slumped more than 40% since reaching a record in May last year. The gains prompted cane farmers in India and Brazil, the worlds biggest producers, to increase output.
India, the worlds second-biggest cane grower and top consumer, may produce a record 30 million tonnes of sugar this year, Gudoshnikov said.