Nov. 18 (Bloomberg) -- Sugar surged the most in six weeks on signs that supplies in India, the world’s second-largest producer, may be lower than estimated as rain, pests and disease reduce yields. India probably will produce 23.27 million metric tons in the year that began Oct. 1, 8.7 percent less than predicted by industry groups, according to data from farmers interviewed by SGS SA for Bloomberg. Australia and New Zealand Banking Group Ltd. said Brazil, the largest grower, may stop exports by January. “India and Brazil continue to be the major supporting factors,” said Michael McDougall, a senior vice president at Newedge USA in New York. “There is concern for next year’s Brazil crop.” Raw sugar for March delivery rose 1.78 cents, or 6.7 percent, to 28.25 cents a pound at 10:33 a.m. on ICE Futures U.S. in New York. A close at that price would mark the biggest gain for a most-active contract since Oct. 7. Earlier, the commodity soared as much as 9.2 percent. Before today, the sweetener gained 15 percent in the past year. The Indian Sugar Mills Association and the Maharashtra State Cooperative Sugar Factories Federation Ltd. forecast annual production of 25.5 million tons. A smaller crop may hinder government plans to lift export restrictions, reducing global supplies at a time of sustained demand. The dollar dropped against a basket of major currencies, enhancing the allure of commodities as an alternative investment. The euro rebounded against the greenback on optimism that a bailout for Ireland will ease the region’s debt concerns. “The macro winds have changed,” McDougall said. --With assistance from Pratik Parija in New Delhi and Allison Bennett in New York. Editors: Patrick McKiernan, Steve Stroth To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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