Despite pandemic, India set to record highest sugar export in 10 years

Despite falling short of its target, the country will be recording the highest export in the decade this season. In 2018-19, 38 lt of sugar was exported out of the country. This year, Indian sugar has been in good demand from Iran, Malaysia, Indonesia, Sri Lanka and Afghanistan.

The 2019-20 sugar season had started with mills reporting huge unsold inventory, mainly due to back-to-back bumper crop in Maharashtra.

In order to help mills generate liquidity to pay their farmers, the central government had announced Rs 10,448 per tonne subsidy for mills to export their stock. The Centre’s scheme, coupled with the drought in Thailand – the major sugar supplier to Asian countries – helped Indian millers explore countries, which otherwise would buy sugar from Thailand.

While mills in Uttar Pradesh were early movers in the game, Verma said mills in Maharashtra also caught up later in the season and exported their quota.

With the next sugar cane crushing season about to start in next two months, Verma said the industry was hoping for a similar subsidy-driven scheme. “Indication are that India will end up producing 305 lakh tonnes of sugar for the next season. So, we are hoping for a quota of 60-70 lakh tonnes for exports,” he said.

“Thailand’s sugar production is expected to be around 80 lakh tonnes next season as against its normal production of 140 lakh tonnes. Indian millers can again service those markets that are usually catered by Thailand,” he said.

Season/Sugar Exported (in Lakh tonnes)

2009-10/2.35

2010-11/26

2011-12/29.92

2012-13/3.48

2013-14/21.27

2014-15/10.94

2015-16/16.56

2016-17/0.46

2017-18/4.64

2018-19/38