“Going by the current trend, it seems the cane area will be at least 35 percent lower next season. We will have a better understanding only in March when farmers finish planting,” a senior official at the Maharashtra state government, who declined to be named, told Reuters.

The global sugar supply is expected to tighten ahead on a combination of higher consumption, a decline Brazilian output, lower Indian exports and a poor European beet crop, Business Standard reports.

iPath Bloomberg Sugar Subindex Total Return ETN

Max Chen contributed to this article.