Bajaj Hindusthan Sugar stands out as the only Indian sugar company featured in the June 2024 Sugar Market Report by S&P Global Platts. The company secured the 10th spot in terms of sugar production for 2023-24 and production variation, among a total of 20 rankings. The report indicates that Bajaj Hindusthan Sugar is likely to remain the sole Indian representative in the Top 20 for 2024-25, as sugar output in India is expected to decline.
The report said that the record sugarcane crop in Brazil, the recovery in the EU and the production crisis in Thailand have resulted in a major reshuffling in this year’s world sugar rankings. The world’s top 20 sugar companies produced around 47.5 million mt of sugar in 2023-24, up 3.2 million mt on the year (+7.5%). At the same time, world production is forecast to rise to 194 million mt from 182 million mt (+6.6%, local crop year basis).
“The price recovery continues to be reflected in the sector’s balance sheets. Profits are still good, while the rise in debt levels is contained. While sugar prices were firm throughout most of the last fiscal year, the cost of production has increased as the price for sugarcane and beet went up by considerable margins” the report stated.
According to the report, the sugar industry in Europe has had its best year since the implementation of the sugar reform in 2017-18. Prices are at multi-year highs and margins have recovered despite considerably higher input costs.
In Asia, sugar production dipped amid poorer weather conditions in the wake of El Nino, which led to companies losing their rankings.
In Latin America, the record sugar production result in Brazil has meant that all companies moved up in the rankings.
Raizen remained at the top spot. Its lead on the second-ranked group (Tereos) expanded to a staggering 2.4 million mt of sugar. In 2023- 24, the world’s No. 1 sugar producer Raizen added 1.05 million mt of production to its total output after integrating the country’s former No.2 Biosev. At 5.8 million mt, the company achieved an all-time high.
The second-largest cane sugar producer on a global scale is Mitr Phol of Thailand. Following a cut of 0.3 million mt in production, it fell to No. 4. In the 2023-24 season, the company produced 2 million mt in Thailand.
