Hangzhou, Sept 26 - China is expected to produce a record 15 million tonnes of sugar in the year beginning October, up 1.1 percent from the previous year, a government official said on Friday.
The high output would worsen the domestic sugar market, which was already experiencing a glut after last year's demand failed to follow its production growth, said Zhao Lihua, a division chief with the National Development and Reform Commission.
Sugar consumption will also be hurt as a result of the tainted-milk powder scandal, Zhao said without elaborating.
Demand for dairy products has dropped off sharply after the disclosure that baby milk formula, some milk and other dairy products had been contaminated with the industrial chemical melamine -- killing four babies and sending thousands of others to the hospital.
The Chinese maker of the popular White Rabbit candy will halt domestic sales due to suspected melamine contamination, state media reported..
Timely replanting after a freeze weather earlier in the year in Guangxi, the country's largest sugar area, has offset the damage by the cold weather, said Zhao, adding the region is likely to produce 9.37 million tonnes.
Sugar stocks from the current year stood at between 1.5 to 1.7 million tonnes, and the government will continue to purchase from domestic mills for state reserves and encourage more exports to support prices from sliding too much, said Zhao.
Beijing has bought more than 1 million tonnes for state reserves this year.