CropGPT Sugar - WTO, Thailand and Brazil. India and Ethanol - Feb 26th
CropGPT Podcast Show Notes - February 26, 2024
Welcome to the CropGPT Podcast, where we dive into the latest developments in the agricultural sector with a special focus on the sugarcane and sugar markets. Today's episode features key stories from Thailand and India, discussing updates on pricing, World Trade Organization (WTO) agreements, production challenges, and farmers' pay.
India's Sugarcane and Sugar Update:
- Tamil Nadu's Production Decline: A decrease in sugar production by 1 lakh tonnes due to operational challenges and a slight dip in the sugar recovery rate to 8.90%.
- Shift Towards Ethanol: Rising Fair and Remunerative Price (FRP) for sugarcane is pushing a trend towards ethanol production, potentially impacting global sugar stocks.
- Sustainability Initiatives: Bajaj Hindusthan Sugar and Balrampur Chini Mills are venturing into environmentally friendly projects, indicating a shift in raw sugar availability for international trade.
- Maharashtra's Production Increase: An extended crushing season and improved recovery rates have led to a production boost, with 207 mills producing approximately 827.23 lakh quintals (82.72 million metric tonnes) of sugar.
- FRP Increase for 2024-2025: In response to farmers' concerns, the Indian government has raised the sugarcane FRP to 340 rupees per quintal, aiming to support farmers' welfare and ensure a stable minimum support price.
Thailand and the WTO Agreement:
- Brazil-Thailand WTO Agreement: A resolution to the dispute initiated by Brazil in 2016 over Thailand's sugarcane and sugar subsidies, reached at a WTO conference in Abu Dhabi.
- Policy Shift in Thailand: Following dialogue with Brazil, Thailand has adjusted its sugar sector support, removing the contested subsidies.
- Price Adjustments in Thailand: Thailand has increased the sugarcane price to 1,197 baht per tonne for the current season, with expectations of a further rise next season based on commercial cane sugar (CCS) sweetness levels.
Brazil's Production Outlook:
- Impact of Weather Patterns: Brazil's sugarcane production faces uncertainty due to unpredictable rainfall and the potential effects of La Niña, despite a forecasted production of approximately 620 million tonnes of sugarcane (41.8 million tonnes of sugar).
Stay tuned to CropGPT Podcast for more updates and insights
