Sugar exports may face some challenges this season – News Couple
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Sugar exports may face some challenges this season


The sector is now on its feet and government intervention will decrease year by year.

Minister of Food and Public Distribution, Sudhanshu Pandey, said on Tuesday that sugar exports from India may face challenges in the 2021-22 season despite already contracting 1.8 million tons at the start of the same season.

Addressing the All India Sugar Traders Association (AISTA) on global sugar, he said that last year India managed to export 7.2 million tons of sweetener to various destinations, nearly 50% of which went to three countries – Indonesia, Afghanistan and Sri Lanka. .

These countries have different dynamics this year. Thailand’s production is likely to rise this time and so Thailand’s sugar will try to find its missing market in Indonesia. Indian sugar will have to compete for the Indonesia market again. Instability in Afghanistan may affect our exports to the country, and Sri Lanka has a huge shortage of foreign exchange. Thus, the industry will have to consider a new arrangement so that the export market is also served.”

Pandey said the country plans to convert about 3.5 million tons of sugar to produce ethanol next year and by 2023, the goal is to convert at least 6 million tons of sugar to produce ethanol. At the same time, he explained, we are also looking at new export opportunities.

More than 50 million farmers and their families depend on the sugar sector, and appropriate pricing policy for the sugar sector should be encouraged. The Minister of Food expressed the hope that this year sugar production will be according to estimates and that the average sugarcane recovery will rise because farmers are using better sugarcane cultivars and technologies.

Subodh Singh, Joint Secretary, Sugar said that in the past ten years the country has produced surplus sugar every year and has become a structurally surplus sugar country. This created challenges for the country. The opening stock in 2019-2020 was 14.5 million tons, then in 2021, the opening stock was 11 million tons and this season may be about 9 million tons. He said the opening stock is declining every year due to our policies on exporting and converting sugarcane to ethanol. The sector is now on its feet and government intervention will decrease year by year.

Singh said the government expects exports of around 6 million tons in the 2021-22 season as well. In 2019-20 India exported about 6 million tons and in 2020-21 the country exported 7 million tons. “Next year, we expect another six million tons in 2021-22 to filter surplus sugar,” he said.

Singh said the total production this year is estimated at 34 million tons and about 3.5 million tons may be diverted for ethanol production and 6 million tons for exports and the total balance should be 7 million tons as the domestic consumption is around 26.5 million tons. He urged factories to export at least 15-20% of their production until sugar prices stabilize in the local market and mills are able to pay farmers. He explained that the government would not provide any assistance to exports this season, and urged the industry to educate consumers on the increase in sugar consumption as well.

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