Sugar exports surge due to firm global prices and export subsidy

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New Delhi: Sugar firms in India are performing well on the export front. According to the news report published in Economic Times, the Union food ministry said that sugar firms have signed contracts of more than 83% of the export target of 6 million tonnes of sugar for the ongoing 2020-21 sugar season.

The export subsidy and firm global prices of sugar along with the lower sugar production in Brazil and Thailand have helped in increasing sugar export. The increase in income from sugar exportation will help the mills to pay the pending cane dues of the sugarcane farmers which have crossed Rs 23,000 crore till February.

Domestic sales are also looking steady despite increasing cases of Covid-19 and lockdown in some parts of the country.

As per a media report, Abinash Verma, director-general, Indian Sugar Mills Association, said, “The pandemic has not affected the sale of domestic sugar in the market. Now a lockdown of seven to 10 days can hardly impact the sugar industry. This year the demand has surged by 20% in March compared with last year. There has not been any report of any drop in the sugar consumption in April yet.”

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