India's sugar exports jumped 50 per cent year on year to 5.7m tonnes
Release Date：2020-09-09
India′s sugar exports are likely to rise 50 per cent year on year to a record 5.7m tonnes this season, driven by a weaker rupee, subsidies and falling output from competing exporters, according to Indian media.
"We have signed contracts for 5.7 million tonnes of exports, of which 5.5 million tonnes have been exported," said Subodh Kumar Sing, joint secretary of the Indian Ministry of Food. Export contracts are expected to increase by another 500,000 to 600,000 tonnes before the end of the season. The goal for this season is to export 6 million tons."
It said the record level of exports was due to increased coordination between the Ministry of Health, sugar mills and the transport sector during the COVID-19 pandemic. Exports have surged, buoyed by continued demand in global markets.
The previous peak year was 2007-08, when India exported 4.9m tonnes of sugar.
Subodh Kumar Sing says sugar exports are likely to be at the same level next season. India is expected to produce 32.5 million tons of sugar during the 2020-21 season, with a surplus of 6-6.5 million tons. 10 million tons of carryover inventory will further increase export demand.
The government′s decision this season to increase export quotas and subsidies to 6m tonnes and 62.68bn rupees respectively has also encouraged sugar mills to export excess production.
India′s exports have been boosted by Indonesia′s first switch to Indian imports and by Malaysia′s return to Indian sugar after many years. Traditional markets such as East Africa, Bangladesh and the Middle East also responded positively during the COVID-19 pandemic.
"As sugar production in Thailand has declined sharply due to drought, Indonesia and Malaysia, which are mainly supplied by Thailand, have had to import sugar from India. In addition, Iran also imports a lot of sugar. Iran and Indonesia together import 1.2 million tons of sugar from India." Abinash Verma, director-general of ISMA, the Indian Sugar Mills Association.
He added that the global price of imported sugar was between rs19-Rs23 per kg, making it possible to import from India.
A weaker rupee also helps India′s exports. India has now been able to convince global importers that it can sustain exports of 5-6m tonnes without depressing prices.
"We have signed contracts for 5.7 million tonnes of exports, of which 5.5 million tonnes have been exported," said Subodh Kumar Sing, joint secretary of the Indian Ministry of Food. Export contracts are expected to increase by another 500,000 to 600,000 tonnes before the end of the season. The goal for this season is to export 6 million tons."
It said the record level of exports was due to increased coordination between the Ministry of Health, sugar mills and the transport sector during the COVID-19 pandemic. Exports have surged, buoyed by continued demand in global markets.
The previous peak year was 2007-08, when India exported 4.9m tonnes of sugar.
Subodh Kumar Sing says sugar exports are likely to be at the same level next season. India is expected to produce 32.5 million tons of sugar during the 2020-21 season, with a surplus of 6-6.5 million tons. 10 million tons of carryover inventory will further increase export demand.
The government′s decision this season to increase export quotas and subsidies to 6m tonnes and 62.68bn rupees respectively has also encouraged sugar mills to export excess production.
India′s exports have been boosted by Indonesia′s first switch to Indian imports and by Malaysia′s return to Indian sugar after many years. Traditional markets such as East Africa, Bangladesh and the Middle East also responded positively during the COVID-19 pandemic.
"As sugar production in Thailand has declined sharply due to drought, Indonesia and Malaysia, which are mainly supplied by Thailand, have had to import sugar from India. In addition, Iran also imports a lot of sugar. Iran and Indonesia together import 1.2 million tons of sugar from India." Abinash Verma, director-general of ISMA, the Indian Sugar Mills Association.
He added that the global price of imported sugar was between rs19-Rs23 per kg, making it possible to import from India.
A weaker rupee also helps India′s exports. India has now been able to convince global importers that it can sustain exports of 5-6m tonnes without depressing prices.
Source: M U T I A N Technology
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