LONDON, (Reuters) – The International Sugar Organization (ISO), Thursday predicted a worldwide sugar shortage of 2.55 millions tonnes for the 2021/22 season. A decreased outlook for consumption will reduce the expected shortfall.

In the past, an intergovernmental body predicted a global sugar shortage of 3.85 millions in 2021/22.

In a quarterly market outlook issued by the ISO, global consumption was estimated at 173.03M tonnes in 2022/22, down 1.44M from August’s projection, but up 1.2% over previous season.

According to the ISO, “Downward revisions of national consumption totals have been reported by governments have been shown in these most recent figures with lower tourism and domestic disturbances as contributing factors.”

In 2021/22, global sugar production was reduced by 185,000 tonnes at 170.47million tonnes. Stocks at the season’s end were at 93.25million tonnes. This is down from 96.74million a year ago.

The perceptions of global stock markets have changed over the past two years due to the global COVID-19 Pandemic. According to the ISO, “The expected closing balance…should confirm that there is a substantial buffer.”

However, there is strong evidence that holding stock options will be an attractive option, which could prove to be a major driver in the 2021/22 cycle.”.