The foods and beverages industry is prone to ups and downs in financial terms. However, over the last decade, the Agri-commodity sector has witnessed constant growth. Especially, if we particularly talk about the Sugar Exports market.
Sugar plays an irreplaceable role in the global food import/export market. The global trade size of the sugar industry stands at an average of 64 million tons/year. However, in the global pandemic, this industry also had to face the most visible impact. In Covid-19, the world sugar industry economy faced a serious deficit.
Impact of Covid-19 on Sugar Exports:
The covid-19 had put unexpected pressure on the Sugar Industry. The sugar exports in the world sugar market had reduced due to lower demands caused by the restraints on social gatherings and outings. At the international and domestic levels, there was a fall in sugar prices too. There are several reasons for the sugar price reduction, such as reduced take-off from the beverage and FMGC companies. Factors that affected the international sugar export were as follows:
- International Sugar price reduction
- Disruptions in supply chain management
- Shortage of cheap labor availability
- Low availability of Packaging material
Sugarcane is the most important source of sugar production. Around 110 countries in the world produce sugar either from sugarcane or sugar beet and approx. 8 countries manufacture sugar both from sugarcane and sugar beet. Brazil is the largest sugar exporter, followed by India, Thailand, France, and Germany. Collectively, they export around 64% (around two-third) of sugar globally. However, the production and restricted transportation in the sugar industry hampered the global sugar industry.
The following table depicts the world Sugar Export data:
|Financial Year||Quantity (in Lakh MT)|
*The data is taken from reliable sources.
Sugar Exporters Survival in Covid-19:
The global coronavirus infection had affected the present and future of the sugar industry. Due to the Covid-19 lockdown, there was a severe decline in sugar consumption. Bulk consumers of sugar, such as beverages, ice-creams, confectionery industries, etc., had reduced their orders. Moreover, the new trading rules and regulations also affected the stakeholders of this industry. The leveraging technology helped the traders to survive in this pandemic situation. Sugar traders are gradually shifting their business platform, i.e., from physical to digital. Online businesses survived this pandemic more smoothly compared to the ones having physical presence only.
Numerous B2B platforms help traders to trade globally. They offer various sugar trading packages that help to trade your business globally. Experts of the world’s first next-generation trading platform – Tradologie.com, simplify the entire trading task. They execute every task from getting verified buyers/sellers to shipping. The platform allows the buyers and sellers to negotiate in real-time without the interruption of any other person. Finalize the deal with the verified buyers/sellers without a phone call or an Email.
India’s Role in Sugar Export Industry:
India plays a vital role in the world sugar industry. After Brazil, India is the second-largest sugar producer and is a top 10 exporter of the same, exporting nearly 15% of the global sugar. Sugar exports from India mainly to the following countries:-
- Sri Lanka
India had exported 38 lakh tons of sugar in the MY 2018-19. On the ongoing marketing year 2020-2021ending September, India has so far exported 5.11 million tons of sugar. In the FY 2020-21, India is the second-largest exporter of sugar, as per the dollar value.