LONDON, Feb 27: World sugar output is seen falling in 2003-04 and tight supplies are expected to be exacerbated by lower EU plantings and more cane being diverted into alcohol in Brazil, analyst F.O. Licht said on Thursday.

“Early signs suggest that world production will fall in 2003-04. Brazil will need to process more cane into ethanol in the new season, raising hopes of lower sugar production and exports,” Licht said in its second review of production in 2002-03.—Reuters