São Paulo Agricultural Trade Office, sugar Annual Report, projects 2021 will be the best ever sugar year in Brazil for exports.
Brazil’s 2020-21 sugarcane harvest has only just begun, but it is promising to be the best sugar year. It may allow Brazil to have a large supply of sugar for export.
According to the ‘Fortnightly Monitoring of the Central-South Region Harvest’ up to 16 May, published by the Brazilian Association of the Sugarcane Industry (UNICA), sugarcane milling in mid-May exceeded 103 million tonnes, up 21.67% from a year ago.
Of this, 45.3% of the processed sugarcane was directed to sugarcane production, compared to 32.19% in the 2019-20 crop. These figures refer to production in Central-Southern Brazil, which amounts to 59% of the Brazilian total.
Market Year 2020/21 at 28.85 million metric tons, in a significant increase of 9.55 mmt compared to revised exports for MY 2019/20 (19.3 mmt, raw value). This happened due to the likely large sugar exportable surplus.
In spite of the COVID-19 pandemic and logistics obstacles, the significant devaluation of the Brazilian currency, the Real, vis-a-vis the U.S. dollar, should keep the Brazilian product highly competitive. Raw sugar exports will likely account for 23.08 mmt during MY2020/21, raw value, whereas the remainder represents exports of refined sugar.
During President’s Jair Bolsonaro trade mission to India, the Brazilian president decided to reassess the critical issue of sugarcane subsidies and pricing policies through bilateral consultations. Please check Sugar Semi Annual Report – BR2019-0018 for additional information) related to sugar in Brazil issues.
On February 2019, Brazil filed a World Trade Organization (WTO) dispute related to the alleged domestic support provided by India in favor of agricultural producers of sugarcane and sugar. In January 2020,