India's sugar output set to drop 7%, could crimp exports

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India's sugar output set to drop 7%, could crimp exports
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India's sugar output is likely to fall 7% this year as erratic weather conditions have cut cane yields, which could dampen exports from the world's biggest producer of the sweetener, farmers, millers and traders said.

Lower sugar exports from India, also the world's second biggest exporter, could lift global prices , and allow rivals Brazil and Thailand to increase their shipments.

This year, Jagtap could gather 530 tonnes of cane from his nine-acre plot, down from the previous year's 750 tonnes. "The summer was harsh and then we received too much rainfall from July," said farmer Baban Karpe from Kolhapur. "The fields were waterlogged and the crop didn't get sunlight for weeks."

Maharashtra, which accounts for more than a third of the country's sugar output, was expected to produce a recordof sugar in the current marketing year that began on Oct. 1, up from the last year's 13.7 million tonnes, according to the state government.

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