Indian Sugar sees an aggressive demand in the international market
A rise in the volume of sugar diverted to ethanol production has led to the increase of Indian sugar export.
Indian sugar exports may possibly reach a record high of 7.5 Mn MTS in the current marketing year 2021-2022 as against the estimated 6 Mn MTS. However, sugar traders do not anticipate a significant rise in local sugar prices. A rise in the volume of sugar diverted to ethanol production has led to a shortage worldwide which Indian traders are fulfilling. As per Sudhanshu Pandey, secretary, Department of Food & Public Distribution Indian sugar export is anticipated to increase.
The Indian Sugar Mills Association (ISMA) stated that sugar millers have so far signed contracts to export 6 Mn MTS of sugar in the current marketing year that ends on September 30, 2022. Of that, 4.2 Mn MTS had been materially moved by the end of February 2022. They also added that India is likely to produce an estimated 33.3 Mn MTS of sugar in 2021/22, nearly 5.9% higher than the previous estimation, with production set to increase in the western state of Maharashtra and neighboring Karnataka. The trade body also said that Maharashtra’s sugar production is likely to achieve an estimated 12.6 Mn MTS, higher from the earlier projection of 11.7 Mn MTS. With Karnataka's production estimation was amended up to 5.5 Mn MTS from 4.52 Mn MTS. They also increased its consumption estimation by 2.6% to 27.2 Mn MTS as sales increased in the first four months of the current marketing year.