Indian sugar exports are expected to gain momentum in the coming months as global sugar prices have increased.

 

According to a press statement from the Indian Sugar Mills’ Association (ISMA), there is a deficit of nearly nine million tonnes in the global market during the 2019-2020 sugar season and Thailand’s exports are likely to be 3-4 million tonnes lesser due to lower production there.

 

Global sugar prices for raw and white sugar are currently 20% to 25% more than what prevailed three months ago, when India started its exports. Accordingly, Indian sugar exports may get accelerated in the coming months, the ISMA said. Nearly 16 lakh tonnes of sugar have been exported so far this season of the 32 lakh tonnes for which contracts have been signed.

 

Some of the sugar mills do not plan to export sugar against their allocated export quotas and some have surrendered a part of their MAEQ (Maximum Admissible Export Quantity) to the government.

 

It is understood that the government is actively considering reallocation of quotas of mills that have not contracted the stipulated quantity for exports, the association said. By the end of the current season, which started last October and will end in September this year, the total sugar exports from the country is expected to be more than 50 lakh tonnes.

 

On the production front, as on February 15, the mills had produced 169.85 lakh tonnes of sugar as against 219.66 lakh tonnes during the corresponding period last season.