As per market reports, about 1.6 million tonnes of sugar has been exported from India, and about 3.2 million tonnes of contracts have been signed for exports.
Amid the global deficit of sugar across the globe, India’s sugar export may cross 5 million tonnes in the marketing year ending September on higher demand from overseas, ISMA (Indian Sugar Mills Association) said on Tuesday.
As per reports, the Indian government has allowed export of 6 million tonnes of sugar for the current year, under Maximum Admissible Export Quota (MAEQ) to help deal with the surplus sugar. Moreover, India had exported 3.8 million tonnes during the 2018-19 marketing year (October-September) against the mandatory quota of 5 million tonnes.
Total Sugar Production
As per reports, India’s sugar production has reached 16.98 million tonnes till February 15 of the current marketing year, which is much lower than 21.96 million tonnes output till the same period a year ago, reports said.
Hike in Global Sugar Price
According to the Indian Sugar Mills Association (ISMA), global sugar prices for raw and white sugar are 20-25 percent higher than the prices which prevailed three months ago when India started its exports against 6 million tonnes under MAEQ.
“Accordingly, Indian sugar exports may get accelerated in the coming months, and could achieve more than 5 million tonnes of MAEQ in the whole season,” it said in a statement.
As per market reports, about 1.6 million tonnes of sugar has been exported from India, and about 3.2 million tonnes of contracts have been signed for exports, it said.
However, ISMA said the government has decided to withdraw and reallocate the export quota of mills that were not able to undertake shipments. “20 percent of export quotas of mills which have not contracted for 25 percent of their MAEQ by end of January 2020, will be withdrawn and reallocated among the others who have exported most of the MAEQ and are willing to export beyond their original MAEQ,” said ISMA.
There is an estimated deficit of 8 to 9 million tonnes in the 2019-20 marketing year in the global market, and that Thailand’s exports are likely to be down by 3-4 million tonnes due to lower production, said experts.
