LONDON: World sugar production is forecast to rise by 8 percent to a record 192 million tonnes, raw value, in 2017/18, boosted by an increase in output in the European Union and Thailand, Informa's Agribusiness Intelligence said on Thursday.
"Within the EU the market is still responding to the scrapping of production quotas for sugar refined from sugar beet, which is creating a huge jump in production," the company, which is the parent of sugar analysts F.O. Licht, said.
EU sugar production was forecast to rise by 3 million tonnes to 20 million tonnes, while in Thailand the crop is seen reaching a record high of 12 million tonnes, up 1.7 million.
"Sugar producers in Thailand are expected to produce a record crop in 17/18 as the country recovers from the dry season caused by the El Nino weather system," the company added.
In Brazil, sugar production was expected to remain flat as more sugar cane has been diverted toward ethanol production during the second half of the season, mainly due to the relatively high price of gasoline.
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