Millers trying to lock in deals with buyers to commence sugar export

New Delhi: Sugar mills in India are eyeing to export sugar surplus in a bid to reduce the glut. To fix the deal and commence the exports, millers are making an attempt from China to Sri Lanka. Sugar season is likely to begin from October.

To reduce the sugar surplus, the government last month announced 60 lakh sugar export subsidy for 2019-20 sugar season. The policy involves an export subsidy of Rs 10,448 per metric tonne (mt) to sugar mills. The total estimated expenditure government will bear Rs 6268 crore.

Experts believe sugar mills will try to export surplus sugar until April when supplies from Brazil start to flood the market.

According to the Abinash Verma, “In a bid to start shipping from next month, sugar mills in India are talking to importers in Iran, Bangladesh, East Africa, China, Middle East, and Sri Lanka.”

Many rival countries have objected to India’s sugar subsidies. Brazil, Australia and Guatemala had knocked the door of World Trade Organization against India’s sugar subsidies, following which on August 15, WTO sets up adjudicatory panel over the issue. They claim India’s subsidies are inconsistent with the WTO obligations and distorting the global sugar market, which is ultimately affecting the farmers and sugar mills of their respective countries.

The Indian sugar sector is suffering from various hurdles from the last two to three years, and to bring the sector out of the crisis, the government had introduced various measures, including sugar export subsidy. Sugar surplus in the country causing harm to the sector, so the shipments will be helpful in reducing the sugar glut in India.

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