Traders see a bright prospect in Indian Sugar
India exported 4.75 MM MTS of sugar as of ongoing M.Y 2020-21.
All India Sugar Trade Association (AISTA) said that sugar mills have exported 4.75 MM MTS of the sweetener so far in the ongoing basis for 2020-21 marketing year ending September, with maximum exports to Indonesia. Sugar millers have signed to export 5.9 MM MTS of sugar so far as against the 6 MM MTS allocation designated by the food ministry in January 2021. An additional 0.43 MM MTS of sugar has been contracted under OGL (open general license) method without subsidy support. Furthermore, sugar export to Iran has begun even in small quantities. About 6,982 MTS were shipped to Iran in June 2021. AISTA said it does not anticipate any significant increase in the export of sugar to Iran in the current period, as they need raw sugar. AISTA added that Indian sugar exporters are not able to trade raw sugar to them at this time, as the present season has closed.
The sugar marketing year lasts from October to September. According to AISTA, mills have exported a total of 4.75 MM MTS of sugar from January 1 until July 6, 2021. Of the total exports undertaken so far, maximum exports have been undertaken to Indonesia at 1.58 MM MTS this year 2021, followed by Afghanistan at 582,776 MTS, UAE at 447,097 MTS, and Sri Lanka at 363,972 MTS. About 273,365 MTS of sugar is under loading. An additional 648,993 MTS of sugar is in transit and for delivery to port-based refineries. According to AISTA Chairman Praful Vithalani, India's total export is expected to cross 6.7 MM MTS. Out of which 700,000 MTS would be under an open general license. He stated that the local sugar market is expected to be flat. The opening stock of sugar for the new 2021-2022 season is expected to be in the range of 9 to 9.5 MM MTS. He also added that sugar production seems to be more than the 2020-2021 season level. Thus, sugar exports will be continued in the next season also. On global sugar prices, AISTA said they have strengthened primarily on account of dry weather conditions in Brazil resulting in lower sugar production. Currently, the international sugar price of raw sugar for the month of October 2021 is hovering around 18 cents per pound. AISTA added that given the current condition of demand and supply of sugar in the world market, India is of the view that the international sugar prices may remain strong in the coming months.