New Delhi: Coronavirus has impacted the sugar industry worldwide. The exports from India have been affected due to a sudden drop in global sugar prices, but the recent depreciation of rupee is giving some relief to the exporters.
According to ISMA, with fresh reallocations being made by the Ministry of Food in April, 2020, of the MAEQ export quotas from the mills who are not exporting, to mills which still want to export, more sugar will thereafter be on offer for exports. With Indonesia opening up its market for Indian sugar, including giving the preferential lower import duty to India (along with Thailand and Australia), Indian sugar will be in very high demand in Indonesia.
In a recent release, ISMA said, “About 80-85% of sugar imports by Indonesia are from Thailand. There has been a massive drop in sugar production by 6.5 million tons in Thailand in current season over last year. That is expected to further drop by another 1 million ton next year. Therefore, a major portion of the unmet import demand of Indonesia will come to India, which can see a spurt from June-July and may continue for another year or so. Already, sugar is getting exported to Indonesia over the last few weeks. Fall in exports during the lockdown will be therefore partially or largely get compensated by the extra sales/exports to Indonesia.”