India can Export 6 Million Tonnes of Sugar Next Season, Says ISMA

On Thursday, Indian Sugar Mills Association (ISMA) stated that India, the global second largest manufacturer of sugar, has the potential to export 6 million tonnes of sugar in the 2021-22 season, which is starting next month.

In the first 11 months of the 2020-21 season (October-September), the sugar exports from India stood at ~ 6.67 million tonnes, registering an increase from 5.57 million tonnes of sugar exports a year ago.

As per the industry body, total sugar exports from India is estimated to exceed 7 million tonnes in the ongoing season.

At present, global prices are estimated at ~20 cents per pound, a four-year high, primarily due to a potential global sugar deficit expected in the next season, as a result of expected production fall from Brazil.

ISMA stated that, “This represents Indian sugar mills an upright opportunity to export surplus sugar until January 2022, and afterward until April 2022 before Brazilian sugar arises into the marketplace.”

It added, “For the upcoming season, several sugar mills have initiated forward contracts for export.”

It said, “It is thus expected that Indian sugar mills would leverage this opportunity and would be able to export ~6 million tonnes of sugar in the next season also.”

ISMA said, “Several global associations including International Sugar Organisation (ISO) have estimated a higher sugar deficit at ~4-5 million tonnes in the 2021-22 season, due to drought in Brazil which is expected to impact the sugar production.”

As per ISMA, sugar from Thailand is expected to arise in the marketplace from January 2022 onwards. Also, the Thailand’s sugar production is expected to be 33.5 million tonnes lesser as compared to normal production of 14-14.5 million tonnes.

According to ISMA, 2020-21 season (until August), the country exported 6.67 million tonnes of sugar. Of the total, 6.22 million tonnes of sugar were exported under the Food Ministry’s allocation and some quantity under open general licence scheme.

As of September 6, an estimated additional 2,29,000 tonne of sugar is expected to be exported.

ISMA said, “This means that having next 20 days left for the ongoing season to end, India’s sugar export could exceed 7 million tonnes.”

Of the total India’s exports, raw sugar stood at 3.42 million tonnes, white sugar stood at 2.56 million tonnes and refined sugar stood at 1,88,000 tonnes.