According to Indian Sugar Mills Association (ISMA) the country has reported to have exported sugar quantities higher by 11.53% in comparison to the previous sugar season.
As per port information and market sources, about 66.70 lac tons of sugar has been physically exported out of the country in the first 11 months of the current 20-21 sugar season i.e. 1st October, 2020 to 31st August, 2021 period. This is almost 11 lac tons more as compared to 55.78 lac tons exported during the corresponding period last season.
The above figure for the current season also includes about 4.49 lac tons of exports done under MAEQ of 2019-20 SS, which was extended upto 31st December, 2020. In other words, about 62.21 lac tons of sugar has been physically exported during January – August, 2021 period, mostly under MAEQ of 2020-21 SS and some quantity under OGL.
Further, as on 6th September, 2021, another about 2.29 lac tons of sugar is at the ports, either loaded on to vessels or in the godowns waiting for more vessels to arrive. This would mean that considering that another 20 days are left in the current season, total exports in the current season could cross 70 lac tons.
Out of the total estimated exports so far, a total of about 34.28 lac tons of raw sugar, 25.66 lac tons of white sugar and 1.88 lac tons of refined sugar have been delivered or moved for exports by mills. Additionally, mills are reported to have delivered about 7.17 lac tons of raw sugar to port-based refineries for refining and exports.
Sugar from India has been exported mainly to Indonesia, Afghanistan, Sri Lanka, Somalia, UAE, China, Saudi Arabia, Sudan, etc., with Indonesia leading with 29% share followed by Afghanistan at 13% of total exports.
Currently, the international prices of sugar are at over four year high at around 20 Cents/lb. Amid reports of lower sugar production in CS Brazil in its current sugar season (April,2021 – March,2022), owing to dry weather conditions due to drought followed by incidence of frost the world prices are expected to remain bullish. It is also reported that Brazil’s next sugar season may also get affected due to the worst ever drought in Brazil in last 90 years. Due to this, many global agencies including ISO have projected a higher sugar deficit to the tune of 4 – 5 million tons in the next 2021-22 SS, starting on 1st October,2021.
Further, sugar production in Thailand is likely to increase in next season as compared to previous years, but still will be lower than its normal production of 14 – 14.5 million tons, by almost 3 – 3.5 million tons. Thailand sugar would come into the market only after January, 2022.
This would mean that Indian sugar mills have a good opportunity to export their surplus sugar in the next couple of months upto January,2022, and thereafter till April,2022 before Brazilian sugar comes into the market.
It is also reported that many sugar mills have signed forward contracts for export in the upcoming season. It is therefore believed and expected that Indian sugar mills will avail this opportunity and will be able to export to the tune of 60 lac tons of sugar during the next season also.