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French sugar trader with Sucden said that the deficit in the global balance of supply of sugar in the 2019-20 season (October-September) can reach about 4 million tons. The reason for the growth of the deficit – the shortfall of production in India, Thailand and the European Union. This publication reports Reuters.

Experts say that sugar production in Thailand should be reduced by about 10% in 2019-2020 to 12 million tons, as farmers growing cane, switch to other crops that can provide higher profits.

Also sugar prices in Thailand fell by about 20%, as the government has made adjustments to some subsidies for the sector, in accordance with the agreement under the WTO.

“They begin to feel the effect of a more open market,” the trader said, speaking about the producers of sugar cane in Thailand.

See also: Overview of the world sugar market: producers expect price stabilization

In India the production fell due to less favourable climatic conditions. There 2019-20 year it is planned to produce about 26-27 million tons to 31.7 million tons, expected in 2018-19.

European farmers may reduce plantings of sugar beets by about 5%. And instead use their land for the cultivation of the relevant raw materials, which are currently more in demand.

Recall that sugar exports to the 2019/2020 marketing year from the EU will exceed 2 million tons. Basic supplies will be carried out in the countries of the Eastern Mediterranean, North Africa and the Middle East.