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Thursday, 8 October 2026

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Asian Sugar Supply Faces El Niño Test as Festival Demand Builds

Sugar production across India, Thailand and the Philippines faces weather and pest pressure as major festival demand approaches.

By TLA AI Editor3 min read

Phnom Penh, 19 September 2026 – Sugarcane producers across Asia are entering a difficult 2026-27 season as El Niño, rainfall deficits, water shortages and pests threaten output just as festival demand is expected to strengthen. The combination raises the risk of price volatility across food manufacturing and consumer markets, with conditions differing sharply among India, Thailand, the Philippines and Pakistan.

India, the world’s second-largest sugar producer after Brazil, is expected to record crop losses of about 5% during the season running from October 2026 to September 2027. Production is forecast at roughly 28 million to 29 million tonnes before ethanol diversion, down from 30.6 million tonnes in the preceding year. Severe rainfall deficits in Maharashtra and Karnataka are reducing planting prospects in states that together account for about half of national sugar output.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.