The International Sugar Organization expects the 2025/26 season's supply deficit to decline sharply, driven by a rise in global production, it said on Friday.

The inter-governmental body's quarterly update projected a global deficit of 231,000 metric tons for 2025/26 (October/September), down from 4.88 million tons in the current season.

"A global deficit of this magnitude, ahead of the start of the season, can be considered as negligible, although the narrowing of the deficit ... is significant," the ISO said.

Global sugar production was projected to rise by 3.1% to 180.59 million tons while consumption was forecast to increase by a marginal 0.4% to 180.82 million tons.

(Reporting by Nigel Hunt Editing by David Goodman)