Sugar exports to go up despite curbs

Despite the curbs, the country’s sugar exports would touch a new high this crop year.

The government had on May 24 imposed a cap of 10 million tonnes on the export of sugar for the season between October and September. The curb was imposed to ensure sufficient availability of sugar in the domestic market and to stabilise prices.

India has been a leading exporter of sugar in recent years. India’s export subsidy programme, lower exports from Thailand and weather issues in Brazil have been supporting Indian exports.

The subsidy, however, was withdrawn last year. Nevertheless, in the previous crop year, the country had shipped 7.2 million tonnes of the sweetener and this was the highest yearly shipment in recent years.

In the first seven months of the current crop year, India has already exported 7.1million tonnes, which is 64 per cent up against the same period last year, according to India Ratings.

Ind-Ra expects the total exports for the current crop year to rise to 9-10 million tonnes, surpassing the previous high of 7.2 million tonnes. Lower production in Brazil due to adverse weather conditions and delayed harvesting will support Indian exports. Brazil is the largest exporter of sugar, constituting 35–45 per cent of the global trade and a fall in its exports in the current season could result in India’s share rising to around 15 per cent. However, exports are unlikely to exceed 10 million tonnes, given the rebound in production in Thailand.

In the current crop year Indian sugar mills have already signed contracts for exports of about 9 million tonnes, which anyway is a new high.