India is facing a potential decline in sugar production for the 2026-27 season. Output is projected to fall to between 29 and 31 million tons, according to a report from Food Business Africa.
The expected downturn is attributed to the effects of El Niño and monsoon rainfall that is expected to be below normal. These environmental factors are likely to impact crop yields across the region.
Additionally, rising market prices may influence how mills operate. There is a possibility that producers will prioritise the manufacture of sugar over ethanol to capitalise on these price increases.