The sugar prices in the world market are increasing at a record high since 2017 due to the lower sugar production in Thailand and European Union followed by drought in Brazil. India should grab this opportunity and speed up the sugar export which is at a lower pace now before the sugar from Brazil enters into the market.
Brazil’s sugar would enter the world market from April and India has a short time period to export the record volume of sugar.
India has set a target of exporting 6 million tonne sugar for the year 2020-21 and the sugar mills have so far signed contracts to export 1 million tonnes of sugar after the government declared export subsidies of Rs 35 billion.
Adhir Jha, managing director and chief executive officer of Indian Sugar Exim Corp. said, “Once Brazilian sugar enters the market, we will be under pressure. The exports have begun but we are running behind as the exports began late and we have to speed up the exports.”
Abinash Verma, director general of Indian Sugar Mills Association said, “We will achieve the set target and the hike in the sugar prices at global level will benefit us.”
Increase in the export of sugar would help in arresting price rise at global level which has reached at peak since 2017.