Sugar production globally has grown exponentially in the last decade and it continues to do so until now. In 2019, the world produced 1,317 million metric tons of sugar, which was 2 percent higher than in 2018 and 8 percent higher than in 2000. The total global production of sugar from cane and beet had increased to 1,382 million metric tons in 2020, as per data by the Food and Agriculture Organization (FAO). More than half of that sugar production came from Brazil, India, China, and Mexico. The top 10 sugar-producing countries were responsible for 54 percent of the total global output in 2021-2022.
India’s Ministry of Commerce has just announced that the country will be placing an export ban on all domestically produced sugar beginning April 1, 2016. This is no small decision as India’s sugar industry stands to lose nearly $1 billion as a result of this policy change, but what will be the implications for the rest of the world’s sugar market? In this article, we’ll explain why India has decided to place an export ban on sugar and what other countries may do as a result of this action.
The international trade of sugar, including imports and exports, contributes to the economic development of many countries. The ten major sugar importing countries and their percentage of the world sugar trade in 2009 were as follows: United States (16 percent), Germany (9 percent), France (8 percent), Canada (6 percent), Japan (5 percent), Belgium-Luxembourg (5 percent), China (4 percent), South Korea (3 percent), Switzerland (3 percent) and Italy (2 percent). India and Netherlands tied with 1% each. Indonesia accounted for less than 1% of world trade.
India’s exports of sugar to Morocco stood at US$1.32 million in 2016, according to Trading Economics global macro models and the latest IMF data. In the long term, the Indian Sugar Exports to Morocco was projected to trend around US$1.36 million in 2020, according to our econometric models. India’s exports of sugar to Morocco are expected to increase 97.2% from 2016 to 2020 at an estimated annual rate of 9.6%.
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.
Tradologie.com is an online global trading platform focused on Agri commodities such as sugar, soybean, mustard seeds, red chili, etc. The company’s aim is to simplify a global sugar trade for buyers and sellers across the globe. The company has its presence in more than 80+ countries globally and is transforming the global sugar trade with its services and solutions.
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.
An important agro-based industry, sugar is a big business in India. Around 50 million sugarcane farmers and 5 lakh workers are directly employed in sugar mills in the country. Employment is generated through ancillary activities pertaining to transport, servicing of machinery, and supply of agricultural inputs as well.
The second largest producer of sugar, India contributes around 20% of the global supply. There are around 5 crore farmers employed and thousands of mills all across the country manufacturing and supplying sugar to cater to our sweet tooth. This is an emerging sugar industry in the country that we are talking about here.
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.