Located in Asia, India is the largest sugarcane producer in the world and it ranks second behind Brazil, when it comes to sugarcane exports.
The major countries which rely on India for their sugar requirements are Indonesia, Malaysia, Bangladesh, Sudan, United Arab Emirates, and Somalia. Last year, the Indian sugar industry earned a huge profit and recorded more than 5000 lakh tonne sugarcane production.
However, on Thursday, the Government authorities and other industry officials stated that India is unlikely to elevate the Sugar Export quota this year, dampening belief that India (the second largest sugar exporter) would allow a second installment of overseas shipments.
India has exported around 11 million tonnes of sugar in the current sugar season till September 30, 2022. Further, on October 1, 2022, the Government of India allowed the sugar mills to export 6.1 million tonnes of sugar till the end of May,2023. However, the Indian Sugar Mill Association (ISMA) is planning to take a second thought on analyzing the export quantity of sugar after accessing the data of domestic sugar production.
Sugar Export In 2022-23 Marketing year
The sugar mill contractor has got the contract to export around 5.6 million tonnes of sugar but the sugar traders were expecting a hike in the export quantity i.e. 2-4 million tonnes of overseas production. However, owing to bad weather conditions the domestic production has been less as compared to last year. Limited sugar exports has led to an increase in global price, this might allow Indian sugar export competitors like Thailand and Brazil to boost their shipments.
Lower sugarcane production in the marketing year 2022-23 does not permit supplementary export of sugar. A Government official also said the country could not fulfill the industry’s requirement of 3-4 million tonnes. He also stated that “We can’t grant even an extra 1 million tonnes this year.”
Based on last year data of sugar exports the Global trading houses were expecting that India might allow the export of 8 to 9 million tonnes of sugar this year ending on September 30, 2023. However, bad weather has made the sugar industry falter on its export requirements.
It was estimated that the sugar production will rise to a record of 36.5 million tonnes, which is much more than the local demand of sugar i.e., 27.5 million tonnes. Further, the estimated sugarcane production has now been cut to 34.3 million tonnes.
According to an industry official, an additional export quota of 4 Lakh tonnes is offered to sugar mills that are involved in diverting sugar cane juice into ethanol. But this proposal would also get rejected before the end of February.
The second largest exporter of sugarcane, India is facing an issue to fulfill the export demand of sugar due to which there is a rise in global prices of sugar. The sugar export from India dips due to less production as the country experiences adverse weather.
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