After four years of oversupply, global sugar supply and demand will likely come back into balance in 2014/15 according to the International Sugar Organization. After a surplus of 4.4 million tons this year, increasing consumption and lower production in certain major sugar producing countries should bring both global production and consumption to near 181 million tons. Although a balance is in sight, the global stockpile to consumption ratio is expected to remain in excess of 40% for one more year because of years of accumulation. Both sugar output and exports for the top-producing country of Brazil are forecast to decrease in 2013/14 and 2014/15, but are forecast to increase once again in 2015/16. Production in India is on pace to decrease this year but the government is increasing incentives to farmers to increase output for next year. Overall global demand is expected to increase by 20 million tons by 2020 with Asia accounting for 50% of global consumption compared to 40% today.
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