Kolhapur: India is likely to bank on the lower global sugar output and increase sugar export. The global sugar output is likely to dip by around 50 to 60 lakh tonne for next two years and India has capacity to meet the global demand.
Out of four major sugar producers in the world, sugar production in Brazil and Thailand is likely to reduce due to bad weather and Brazil diverting maximum cane to ethanol production. On the other hand India has excess sugar production and would export it to meet the global demand.
Sugar price in the international market is around Rs 2700 per quintal. With export subsidy of Rs 6000 per tonne, the mills would get Rs 3300 per tonne.
India is eying to increase sugar export to Indonesia, second largest sugar importer in the world. Indonesia needs 30 lakh tonne raw sugar and India is soon to sign an agreement with the country to supply the sugar.
Prakash Naiknavare, managing director of Indian Sugar Mills Association said, the global demand for raw sugar is increasing and if the mills increase production of raw sugar, we would be able to meet the target of exporting 60 lakh tonne sugar. This will benefit the sugar sector in India.
Sugar expert Vijay Autade said, “Lower sugar output in Brazil and Thailand will benefit India where sugar production is in excess. India should grab the opportunity to export sugar.”