Sugar is one of the most consumed agro-commodity around the world. The production of sugar and the content of sugar in sugarcane determines the market price of sugar worldwide.
Due to high demand for sugar in the market, the export price boosted up last tuesday. On Tuesday, May New York sugar #11(SBK23) closed up at +0.32 (+1.63%) whereas, white sugar May London #5(SWK23) closed up at +10.70 (+1.91%).
Sugar is one of the most consumed agro-commodity across the world. Sweetener is used widely in different parts of the world. In Asian nations, sugar is used for making tea and coffee, while in Germany, France, Italy, and the UK it is used in bakeries.
The food secretary of India Sanjeev Chopra said that the Government will take a decision to increase the Sugar Export quota next month. According to him, the sugar export quota will be raised after analyzing the sugar production on the domestic front with respect to internal demand.
India is the largest sugar producer in the world, and the Asian nation ranks 2nd behind Brazil in terms of sugar exports.
All India Sugar Traders Association (AISTA), a body of traders and exporters, has estimated India’s sugar production at 34.5 million metric tonnes (MMT) for the current season (October 2022 -September 2023).
Sugar is one of the most important food products. It is used as a sweetener, preservative, and flavour enhancer in various food products. The global export-import market of sugar is expected to reach USD 36 billion by 2022, growing at a CAGR of 6% during 2017-2022.
Sugar prices have been on a steady rise over the past few months, lack of supply is the reason. But the demand for Indian sugars has seen an overwhelming increase from global markets. This is due to the shortfall in production in Brazil, which has led to exports at lesser margins. The fall in the value of the Rupee has also been beneficial to Indian exporters.
The start of the year 2022 witnessed a drop in global raw sugar price by more than 10 percent from a multi-year high that was achieved in November 2021 in response to increasing global supplies. There will also be additional pressure on sugar with the annual rebalancing of commodity indexes. The supply woes are expected to ease out with better prospects for Brazil sugar harvest in the upcoming season starting in April and a bigger crop of sugar in India.
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.
The global sugar trade is around 64 million tons per year. Raw sugar accounts for around 60% of worldwide commerce volumes. Although more than 120 nations produce sugar, the top 5 Sugar Exporting Countries (Brazil, Thailand, India, Australia, and Guatemala) accounted for approximately 70% of global commerce in 2016-18.
Sugar is derived from two major crops: sugarcane and sugar beet, which are grown in various regions across the world. Sugar beet grows best in chilly, wetter climates. There are more than 120 Sugar Producing Nations around the globe.
