The increasing demand of Indian sugar export
Indian sugar traders have signed contracts to export 1.2 Mn MTS for M.Y '21/'22 that starts from Oct. 1.
India sugar exports, the world's 2nd largest sugar producer, might restrict a rally in international sugar export prices that reached 4.5 years high in August 2021 as sugar exporters started scaling down that estimated Brazil's production due to bad weather. The Indian Sugar Mills Association (ISMA) stated that India may possibly export 6 Mn MTS of sugar in the upcoming marketing year as the international sugar shortage is set to aggravate this year 2021 because of lower sugar production in Brazil. ISMA said that the country can export a record of 7 Mn MTS for M.Y ‘21/’22, banking on a government grant for foreign sales.
However, another sugar trade institution, the All-India Sugar Trade Association (AISTA), said that India might export 7.5 Mn MTS of sugar in the current marketing year ending on September 30, 2021, and that 6.96 Mn MTS have already been shipped. The government has declared a grant for next season as international sugar prices have increased.
ISMA said that the top sugar exporting country, Brazil will begin its new season from April 2022, while new season supplies from Thailand are expected to become available only after January 2022. Giving India an opening to export surplus sugar in the next few months. India might begin the 2021/2022 marketing year by carrying forward stock of 8.7 Mn MTS and produce another 31 Mn MTS in the season compared with domestic sugar demand across 26 Mn MTS.
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