ABSTRACT
World sugar production has grown by 2.8 per cent annually since 2000, reaching 162.5 million tonnes in 2008, with sugar cane accounting for 80 per cent of the total and Brazil continuing to dominate the world market (Tables 8.1 and 8.2). Brazil accounts for 50 per cent of world sugar trade; thus, the share of sugar cane going to produce ethanol or sugar in Brazil is a leading determinant of global sugar production. India is the second-largest cane sugar producer after Brazil and is the world’s largest consumer of centrifuged and semi-processed sugar (gur and khandsari or jaggery). Due to a lack of alignment between sugar prices and governmentcontrolled cane-pricing policies, the country’s sugar balance moves regularly between surplus and deficit, with strong repercussions on the world sugar balance. Sugar production responds strongly to: policy-induced adjustments in the EU and the countries of the North American Free Trade Agreement (NAFTA); the continuing sugar cycle in India; and the rate of growth in Brazil’s fuel ethanol/sugar industry, which will continue to shape sugar-production growth worldwide over the longer term. Whilst still subject to weather shocks, world sugar production will increase further to meet steadily rising sugar demand. Whilst Brazil is anticipated to be the centre of growth, other countries/regions such as India and sub-Saharan Africa will also likely show strong production growth.
