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Indian Sugar Exporters Exhaust Nearly All Of Sugar Export Quota

Indian Sugar Exporters Exhaust Nearly All Of Sugar Export Quota

Located in Asia, India is the largest sugar producer in the world, and the Asian nation ranks 2nd behind Brazil in terms of sugar exports.


The UK-based Marex Group submitted its weekly report which said that only 0.7 million tonnes (MMT) remained to be exported out of India’s 6MMT export quota. It further said, “Although India’s exports will be down, the net result will be to produce a 3-5 mt surplus in 2023.”


A record 11.2MMT of sugar was exported out of India in 2021-22 and the government capped sugar exports at 10MMT but later increased by 1.2MMT totaling the total exports at 11.2MMT. This was done to ensure that ample stocks remain for domestic consumption and storage. The sugar marketing year starts in October and ends in September.


India’s Sugar Export Quota

The Sugar Exporters in India were allocated a 6MMT export quota by the Central Government for the ongoing sugar season (October 2022-September 2023) which has almost been exhausted as deals have been set to sell 5.5MMT by 31st December 23.


Praful Vithalani, the Chairman of the All India Sugar Traders Association (AISTA) said, “ The 6MMT export quota has almost been sold. The Centre may have to come up with a second tranche of allocation (quota) to allow additional volume.” He also said on the demand for the import of 3.5MMT of raw sugar from Indonesia, “We have nothing more to give after exhausting the export quota.”


An unidentified industry source mentioned, “The going is good on sugar exports. About 1.5MMT have been physically shipped out. The movement was affected after some deals were renegotiated since some sellers defaulted.” In light of the previous year's season, the Central Government permitted sugar exports for the November 2022 quota at 6 MMT. It was also stipulated that the shipments must be completed by 31st May’23. Also, about 4.5MMT of sugar is being diverted towards the production of ethanol which along with the sugar production is another record high.

India’s Surplus Sugar Production

The GOI may consider increasing the sugar export quota for the current 2022-23 marketing year after assessing the domestic production in January once the sugar production figures come in. As per the Indian Sugar Mills Association (ISMA), India’s annual sugar production is projected at 36.5MMT as against 36MMT in the previous year, and the output was up by 3.5% in 3 months of the current season. Vithalani said that the sugar production is good this season but trade sources said that the production in Uttarakhand has been affected.


ISMA said there is scope for the export of 9MMT of sugar this season which would leave 5.5MMT of closing stocks, the same as last season after domestic sales of 27.5MMT.


MEIR Commodities’ Shaikh said Bangladesh, Iran, and Indonesia have emerged as the biggest buyers of Indian sugar this season. “Some consignments are heading to Dubai too,” he said.


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