Sugar supply deficit in global market to double in 2016/17

The International Sugar Organization (ISO) is sticking with its forecast of a 2.5 million ton deficit on the global sugar market in 2015/16. In 2016/17. The deficit looks set to more than double to 6.2 million tons, the ISO assuming that demand will also continue to grow by around 2% per year, notes Commerzbank.

Therefore, it has stressed that its forecasts are subject to considerable uncertainties - as far as 2015/16 is concerned, this applies in particular to the still unclear outlook for the Indian crop. 

The monsoon in India has brought 14% less rain than usual so far, and as much as 30-45% less in the key sugar cane growing states. What influence El Niño will have is still uncertain in other countries too. The uncertainty is further increased by political interventions.