Sugar Traders looks forward to having a strong export for M.Y 2021-22
India: sugar prices turn bullish in both local and international markets.
The 2021-22 marketing year sugarcane season guarantees to be a historical one for the sugar trade. With sugar prices turning bullish in both local and international markets, the sugar trader looks forward to seeing strong exports without the need for government subsidy. Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories stated that the decision of the central government to move forward for ethanol has also shown to be a game-changer for the industry and will support its function independent of any government assistance or subsidy. he also added that 34 lakh MTS of sugar were estimated to be diverted for the making of the ethanol this 2021, as compared to 22 lakh MTS diverted last 2020.
All India Sugar Trade Association (AISTA) stated that Sugar mills have exported 2.76 lakh MTS of sugar in the last 40 days of the 2021-2022 marketing year with the highest deliveries to the United Arab Emirates. Over 1.44 lakh MTS of sugar is under loading. Sugar mills have contracted to export 18 lakh MTS of sugar without government aid. AISTA also mentioned that sugar mills have traded a total of 2,76,676 MTS of sugar from October 1, 2021, to November 9, 2021. The total exports commenced so far, highest export has been to the United Arab Emirates at 1.08 lakh MSTS, followed by Bangladesh at 52,330 MTS, Somalia at Rs 24,960 MTS, and Iran at Rs 22,646 MTS. Because of the delay in the start of the mills, the raw sugar exports have slowed down despite contracting 18 lakh MTS of sugar. The trades are taking place primarily from the sugar mills of Maharashtra and Karnataka. Sugar Export of 18,290 MTS to Sri Lanka took place even though the country is facing foreign exchange struggles. For the period of 2020-21 marketing year, India had exported sugar for a record of 72.3 lakh MTS. The highest cargoes were commenced with the assistance of government subsidies.