Located in Asia, India is the largest sugar exporter in the world and it ranks behind Brazil in terms of sugar production. Owing to favorable weather conditions and sufficient rainfall, India has a bumper harvest every year and this helps the sugar exporters of the nation export bulk sugar to 50+ countries after meeting the domestic demand.
The price of any commodity be it rice, wheat, or sugar, depend upon market factors that indicate whether or not the commodity will have a demand in the market. In case it seems that the demand is strong reflecting higher market interest to buy, the price of the commodity rise. Else, in case of low market demand, the price of the commodity falls.
On 12th April 2023, the May NY world sugar #11 (SBK23) closed down by -0.32 (-1.31%), and the May London white sugar #5 (SWK23) closed down by -8.60 (-1.22%). India is the world’s largest sugar producer and exporter following Brazil.
Located in Asia, India is the second largest sugar exporter and producer in the world. The Asian nation exports bulk sugar every year to different countries around the world and owing to strong demand all year round, Indian Sugar Exporters earn good revenue year after year.
On 22nd March 2023, Ahmed Samir, the Minister of Trade and Industry in Egypt, announced a three-month ban on all forms of sugar exports, with the exception of amounts that exceed local market requirements.
Since the start of the year 2022, Bangladesh have been struggling to make ends meet. The Russia-Ukraine war, followed by heavy rains and floods that hampered domestic production of food grains have raised troubles for the Asian nation. Owing to the series of events, the prices of several food and agro-commodities have been on rise in the domestic markets of Bangladesh, pinching the pockets of commoners.
India is the largest sugar producer in the world and the Asian nation ranks second behind Brazil in terms of sugar exports.
On 1st of March, 2023 , the price of sugar surged sharply, with the May NY sugar recording a contract high. Prices will rise as there are indications of limited global sugar supplies. The March 2023 ICE sugar contract, which expired on 28th February 2023, was settled with the delivery of 11, 551 contracts, or about 587,000 MT of sugar. That was the smallest March sugar contract settlement since 2013 and fell far short of the 1.34 MMT required to settle the March 2022 ICE sugar contract, indicating tight supplies. On the 1st of March, May London White Sugar #5 (SWK23) closed at +13.50 (+2.40%), and May NY World Sugar #11 (SBK23) closed at +0.50 (+2.49%).
In a recent letter to the Commerce Ministry, the Bangladesh Sugar Refiners Association (BSRA) submitted a set of proposals with a request to take necessary steps to keep the price of sweetener stable in the domestic market. The proposals were against the backdrop of a recent surge in domestic sugar prices and a supply shortage of the commodity in the local markets in Bangladesh.
As per the World Trade Organization’s (WTO) report, Brazil ranks first in the sugar export business followed by India. The Asian nation is the leading producer and consumer of sugar in the world and ranks behind Brazil in terms of sugar export. The year 2022 proved to be a watershed season for the Indian sugar export sector as the Indian sugar mills contracted to export 6.1 million tonnes of sugar.
The Indian sugar industry is one of the most important agro-based industries in the world. It not only generates Sugar for domestic and international consumption but is also crucial for the livelihood of the rural sector of India. Around 50 million sugarcane farmers as well as 5 lakh workers are dependent on the sugar industry of India for employment. India is not just the largest producer but it is also the major consumer and exporter of sugar worldwide. Thus, it is essential for the sugar industry to generate high revenue for the benefit of farmers and workers associated with the sugar industry.
