India is the largest sugar producer and is the second largest sugar exporter in the world. The country has entered into a contract for export of about 35 lakh tonnes of sugar so far in the ongoing 2022-23 season, out of which about 2,00,000 tonnes have been shipped in October as per ISMA (Indian Sugar Mills Association.
Indian Sugar Production
The crushing operations have begun in the current 2022-23 season and Indian Mills have produced about 19.9 lakh tonnes of sugar till 15th of November 22 for the current season 2022-23, slightly lower than 20.8 lakh tonnes in the 2021-22 period.
Several sugar mills in Western India have started their operations a little late this season, because of which the sugar production till 15thNovember’22 was slightly lower, the ISMA said in a statement.
In the 2021-22 season, India exported 11 million tonnes of sugar and this was when the Government of India capped sugar exports to ensure adequate stocks and stabilise prices in the domestic market. There has not been a shortage in the reserves and this is evident from the fact that in the last crushing season, 525 mills of India produced around 40 million tonnes of sugar.
Indian Sugar Exports
The sugar export policy of 2022-23 was announced on November 5 which allowed the Sugar Exporters to export 6 mt tonnes of the sweetener (used by mills for sugar production) on a quota basis till 31stMay’23. The GOI said that further allocation would depend after the assessment of the domestic sugar situation in the country.
As per a statement from the ISMA, i.e. “As per port information and market reports, about 35 lakh tonnes of contracts for export of sugar have already been entered into so far.” We can conclude that the sugar industry exports are up to a good start and out of the quantity mentioned, about 2,00,000 tonnes of sugar have been noted to have been physically exported out of the country in the month of October, when compared to about 4,00,000 tonnes in the corresponding month of October’21.
Future Of Indian Sugar Exports
Owing to the promise of bumper production, sugar millers are currently making deals with importers overseas beforehand. The ISMA had noted that several traders had entered into export contracts for the 2022-23 season much before the export policy was announced by the government. It further said that “Since then, there has been an upward trend in international prices of sugar, as a result of which sugar mills are renegotiating export contract prices,”
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