Stories
Sugar Supply Faces Major Risk in 2027-28 Due to El Nino Impact on Cane Planting
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CNBC TV18•07-10-2026, 12:50
Sugar Supply Faces Major Risk in 2027-28 Due to El Nino Impact on Cane Planting
- •India faces a potential sugar supply challenge in the 2027-28 season as El Nino heavily impacts fresh sugarcane planting in key states like Maharashtra, Karnataka, and Gujarat.
- •NFCSF Managing Director Prakash Naiknavare stated that sugar availability for the 2027-28 season remains a big question mark due to the lack of new cane planting.
- •Gross sugar production for 2026-27 is estimated at around 290 lakh tonne, lower than last year's 309 lakh tonne, though reduced ethanol diversion will help domestic availability.
- •Drought conditions in Maharashtra and Karnataka are pushing the industry to consider early crushing to harvest standing cane and provide cattle fodder, despite risks of lower sugar recovery.
- •Global sugar prices have surged sharply due to heavy flooding disrupting cane harvesting in Brazil, signaling tighter international supplies.
Key Questions Answered
India could face a sugar supply challenge in 2027-28 because the impact of El Nino is weighing on fresh sugarcane planting in key producing states like Maharashtra, Karnataka, and Gujarat.
The NFCSF estimates gross sugar production at around 290 lakh tonne for the 2026-27 season, which is lower compared to 309 lakh tonne the previous year.
Mills are considering early crushing because drought conditions are worsening in those regions, which can help farmers harvest standing cane and divert some of it for cattle fodder amid water and fodder shortages.
