With the international prices being favorable for sugar exports have been proving to be quite fruitful to the Indian sugar industry. According to latest reports by the Department of Food & Public Distribution, in 2021, approximately 60.01 LMT of sugar has been dispatched from sugar mills for export. Out of which more than 16 LMT i.e more than 26.67% of the Indian sugar exports has been exported to Indonesia and more than 6 LMT to Afghanistan.
Marketmen suggest that remaining sugar has been successfully exported to a few countries in South Asia, Africa and some Arabian countries. Indian exporters have also signed sugar export contracts five months ahead of shipments after Brazilian sugarcane crop concerns exhibited decline in sugar production around the global market. Sugar exports are likely to peak to 7 million tonnes for the ongoing sugar season 2020-21.
The global market has currently been holding an upswing with sugar prices. While all eyes remain on further crop reports from Brazil, the market is also eyeing on what export policy comes up by the Government of India for the upcoming season 2021-22.
The London White Sugar front month contract is trading at $482/tn whereas the New York Sugar front month contract is trading at 19.70/lb. [15:30 hours – IST]