India may export 60 lakh ton sugar this season: ISMA

 

 

 

India may export 60 lakh ton sugar this season: ISMA

India may export 60 lakh ton sugar during the current sugar season 2020-21 (October-September) due to lower output in Thailand despite lower incentive for exports, says Indian Sugar Mills Association (ISMA).

Meantime, India’s Oct-Dec sugar output jumped 42% on year to 110.72 lakh tons.

So far, mills have signed contract to export around 10 lakh tons of sweetener and sugar have started moving for exports.

Though the actual expenses incurred on internal transport, ocean freight and marketing and promotion charges are much higher, the government had restricted the export subsidy for the sugar exports at Rs.6000 per ton considering that the world sugar prices were better in December 2020 as compared to what it was in September 2019.

 “Considering that the world wants Indian sugar, and the fact that sugar production is lower in Thailand, EU etc., India should be able to export its targeted volumes with the support of the Rs.6000 per ton of export subsidy during 2020-21,” said ISMA in a press release.

Sugar production in the second largest sugar exporting nation i.e. Thailand, is almost 80-90 lakh ton less than what they usually produce.

“Therefore, India has an opportunity to export its sugar to the Asian importing countries, especially Indonesia and Malaysia, in addition to its own traditional markets in Middle East, Sri Lanka, Bangladesh, and East Africa etc.” ISMA added.

India has a good opportunity to contract and export sugar till about March-April 2021, by when Brazilian sugar comes into the market.

 With Brazilian sugar production estimated to be over a record high of 380 lakh ton from April 2021, the net ex-mill sugar prices for Indian millers will not remain as good in future for their sugar exports.

OUTPUT UP 42%

Meantime, Indian mills during the first three months of the current season have produced 110.22 lakh tons of sugar, as compared to 77.63 lakh tons produced last year in the same period thanks of sharp jump in production in Maharashtra-the second largest producing state.

 In Maharashtra, 179 sugar mills, which are in operation, have produced 39.86 lakh tons till 31^st December, 2020, as against 135 sugar mills which had produced 16.50lac tons last year upto same period.

 In Uttar Pradesh –the largest producer-sugar output stood at 33.66 lakh tons as against 33.16 lakh tons a year ago.

Sugar output in Karnataka-the third largest producer-sugar output went up to 24.16 lakh tons from 6.33 lakh tons last year.