Beijing, June 2 - China is likely to face a shortage of sugar in the second half of the year as inventories dwindle due to lower production in 2009/2010 (Oct-Sept), state media reported on Wednesday, citing a senior official.
China's sugar shortage was projected at 780,000 tonnes for the current year, Liu Hande, vice chairman of the China Sugar Association, was quoted as saying in the China Securities Journal.
He estimated China's sugar supply for the year at 13.22 million tonnes, including 10.7 million tonnes of production and 2 million tonnes of state sugar reserves, plus an estimated 500,000 tonnes of sugar imports. Consumption, meanwhile, was likely to hit 14 million tonnes.
The shortage could grow to 1 million tonnes in 2010/2011, estimated Liu, with domestic output seen at 12.7 million tonnes while consumption could grow to between 14.7 to 15 million tonnes, he said.
China's sugar demand would grow faster than production, leading the world's third-largest consumer to remain a net importer, while food companies continue to use corn sweetener as a sugar substitute, said Liu, who did not provide specific figures.