Poorest Monsoon in Five Years Clouds India Sugar Export Prospect

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(Bloomberg) -- India recorded the weakest monsoon rains in five years, increasing the risk to crops in the fields and raising the probability of longer curbs on exports of farm commodities such as sugar, rice and wheat.Most Read from BloombergEurope’s Richest Royal Family Builds $300 Billion Finance EmpirePakistan Rupee Set to Become Top Performing Currency Globally Murder Claim in Canada Is Only Helping India Leader Modi at HomeWeight-Loss Drugs Estimated to Save Airlines MillionsTop Chinese Sc

The Asian nation, which relies on rains to irrigate about half of its farmland, received 820 millimeters of rainfall during the June-September monsoon season, 6% less than the long-term average, according to the India Meteorological Department.

Precipitation in the east and northeast, major rice-growing regions, was 18% below normal during the monsoon, the weather office said. Some parts of Karnataka and Maharashtra states, key sugar producers, were among the driest areas this year, it said. Sucden’s General Director Jeremy Austin said last week that the nation is expected to produce 28.6 million tons of sugar in 2023-24, much less than the Indian Sugar Mills Association’s prediction of 31.68 million tons. The country’s estimated production in 2022-23 was 32.8 million tons, according to ISMA.Although monsoon activity was below-normal this year, rainfall was not impacted much by the El Niño, according to Mrutyunjay Mohapatra, director general of India’s weather bureau.

 

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