India's sugar exports surge 50% to a record level of 5.7 million tonne this month
exports will rise 50% to a record of over 5.7 million tonnes in the season
ending this month, helped by the depreciated rupee, subsidy and lower output
from rival suppliers.
expects the robust performance to continue in the next season also.
5.5 million tonnes have been
already dispatched from mills
contracted 5.7 million tonnes out of which 5.5 million tonnes have been already
dispatched from mills. We expect contracts of further 5-6 lakh tonnes before
the season ends,” said Subodh Kumar Singh, Joint Secretary, Food Ministry.
India had a target to export 6 million tonnes.
He said that the
record export has been possible due to better coordination between ministry,
millers and transporters during Covid-19 pandemic.
“Export shot up
due to sustained demand at global market,” Singh said.
Extension of subsidy encouraged mills to ship excess sugar
decision to extend subsidy of Rs 6,268 crore for export of 6 million tonnes
sugar also encouraged mills to ship excess sugar.
Opening of Indonesian market a
reason for exports rise
Exports have risen
due to opening up of Indonesian market for the first time and Malaysian market
after long time. The traditional markets like East Africa, Bangladesh and
Middle East also reacted positively during Covid pandemic.
“Due to drastic
drop of sugar output in Thailand owing to drought, Indonesia and Malaysia which
are primarily served by Thailand, had to import sugar from India. Apart from
that, Iran also imported sugar in large quantities. Iranian and Indonesian
imports together comprise 1.2 million tonnes while Malaysia imported sweetener
in small quantity,” said Abinash Verma, Director General, ISMA, an industry