Nagpur: Global sugar output is estimated to be lower this year and India will benefit from this due to excess domestic sugar production.
Of the four major sugar producers in the world, sugar production has been affected in Thailand due to the bad weather and the country is expected to produce lower sugar and will not be able to meet its target to export sugar to the other countries. Brazil has witnessed less sugarcane cultivation and has diverted more cane to the ethanol production than sugar production which will result in lower sugar production in Brazil. The unfavorable climate has resulted in lower sugar yield in European countries.
Whereas in India the sugar output is at record high and India can fulfill the global demand of sugar. The central government’s export subsidy of Rs 6000 per tonne will boost the sugar export and the mills can get a rate of Rs 3300 per tonne for exported sugar after taking benefit of export subsidy. This would help the sugar mills to afloat their sugar stocks and generate funds so that they could pay cane bills to the sugarcane farmers.