India’s sugar exports slowing down on sluggish global sugar price; exports only 9.39 lakh tonnes so far: AISTA

Sugar mills have exported 9.39 lakh tonnes of the sweetener till the first week of December during the ongoing 2021-22 marketing year that started from October 1, and are not in hurry to sell further stock in view of sluggish global price trend, trade body AISTA said on Tuesday.

About 4.68 lakh tonnes of sugar is in transit, the All India Sugar Trade Association (AISTA) said in a statement. Global sugar prices are in the range of 18-19 cents per pound for raw sugar and $496 per tonne for white sugar.

Mills have contracted to export 33 lakh tonnes of sugar without the government subsidy so far in the 2021-22 marketing year, it added. The sugar marketing year runs from October to September. Sugar exports this year are being undertaken without the government subsidy.

According to AISTA, mills have exported a total of 9,39,435 tonnes of sugar from October 1 to December 6, 2021. “Indian mills are not in a hurry to sell sugar as previous sales are yet to be executed. Also, they do not like the current global prices, which shall have to move up to attract more Indian sales,” AISTA said.

The highest export deals have been undertaken by mills in Maharashtra. Mills in this state are facing huge logistics problems. As such, there are acute transportation problems both by railways and road, it added.

During the marketing year 2020-21, the country had exported a record 7.23 million tonnes of the sweetener. The maximum shipments were undertaken with the help of government subsidy.

Sugar mills have already entered into contracts for export of 35 lakh tonnes in the 2021-22 sugar season, trade sources revealed. However, the prices came down sharply after the spread of the Omicron variant that spoilt market sentiment. According to the Indian Sugar Mills Association (ISMA), most of the export contracts made when the global sugar prices were in the range of 20 to 21 cents per pound of raw sugar and mills find the current prices of about 18.6 cents unattractive.

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