World production of centrifugal sugar is expected to increase through 1986-87 to 101.5 million metric tons raw value, compared with 99.2 million metric tons in 1985-86, the U.N. Food and Agriculture Organization forecast.
The FAO said sugar consumption is also expected to increase to 101.7 million metric tons in 1987, compared with 100.0 million metric tons last year.The report foresaw cane sugar production increasing to 64 million metric tons in 1986-87, compared with 62.4 million metric tons in 1985-86. Output of beet sugar will increase slightly to 37.5 million metric tons in 1986-87, compared with 36.8 million metric tons in 1985-86, the FAO said.
World sugar trade in 1987 will decline by some 5 percent to 24.8 million metric tons, the report forecast. The decline will mainly reflect "drastic" reductions in the U.S. sugar import quota and efforts by the Indian government to limit imports, it said.
By contrast, the report expected Soviet imports in 1987 to be higher than previously expected, since domestic consumption is now thought likely to exceed earlier expectations. This assumed consumption increase, and the final outcome of crops in Cuba, Brazil and Indonesia, are the main market uncertainties in a season otherwise well under way, it said.
Nevertheless, the overall world supply/demand situation does not suggest that a sustained increase in world sugar prices can be expected, the FAO said.