India exports 4.75 mn tonnes of sugar so far this year: Trade body

Sugar mills have exported 4.75 million tonne of the sweetener so far in the ongoing 2020-21 marketing year ending September, with maximum shipments to Indonesia, trade body AISTA said on Friday.

Mills have contracted to export 5.9 million tonne of sugar so far as against the 6 million tonne quota assigned by the food ministry in January this year, All India Sugar Trade Association (AISTA) said in a statement.

Additional 4,30,000 tonne of sugar has been contracted under OGL (open general license) route without subsidy support.

Moreover, sugar export to Iran has started albeit in small quantity. About 6,982 tonne was shipped to Iran in June, it added.

The sugar marketing year runs from October to September.

According to AISTA, mills have exported a total of 4.75 million tonne of sugar from January 1 till July 6, 2021.

Of the total exports undertaken so far, maximum exports have been undertaken to Indonesia at 1.58 million tonne so far this year, followed by Afghanistan at 5,82,776 tonne and the UAE at 4,47,097 tonne and Sri Lanka at 3,63,972 tonne.

About 2,73,365 tonne of sugar is under loading. An additional 6,48,993 tonne of sugar is in transit and for delivery to port-based refineries, it said.

AISTA said it does not expect any substantial increase in export of sugar to Iran in the current season, as they need raw sugar.

"We are not in a position to supply raw sugar to them at this stage, as the current season has since closed," it added.

According to AISTA Chairman Praful Vithalani, "India's total export expected to cross 6.7 million tonne. Out of which 7,00,000 tonne would be under OGL."

He noted that the domestic sugar market likely to be flat. The opening stock of sugar for the new 2021-2022 season is expected to be in the range of 9 to 9.5 million tonne.

"Sugar production looks like to be more than the 2020-2021 season level. Hence, exports will be continued in the next season also," he added.

On global sugar prices, AISTA said they have hardened mainly on account of dry weather conditions in Brazil leading to lower sugar production.

Further, increase in crude oil price has made production of ethanol more attractive.

Presently, the international sugar price of raw sugar for the month of October 2021 is hovering around 18 cents per pound.

"Given the present situation of demand and supply of sugar in the world market, we are of the view that the international prices may remain firm in the coming months," AISTA added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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