India’s sugar exports have slowed sharply due to the ongoing conflict involving the United States, Israel and Iran, with shipments almost coming to a standstill. Although the central government has allowed the export of 20 lakh metric tonnes of sugar, only about 4 lakh tonnes have been exported so far, Saamana reported.
Industry sources said the war situation and falling global sugar prices may result in nearly 15 lakh tonnes of sugar, originally meant for export, remaining in the domestic market.
The disruption has been linked to the closure of major shipping routes, including the Suez Canal and key sea passages in the Gulf region due to the conflict. As a result, cargo movement has been affected and sugar shipments have slowed.
For the current crushing season, India’s sugar production is expected to reach around 300 lakh metric tonnes. Considering this output, the central government permitted exports of 20 lakh metric tonnes. However, with only 4 lakh tonnes exported so far, uncertainty remains over the remaining quota.
Global sugar prices have also declined. At present, export sugar is priced between Rs 3,600 and Rs 3,700 per quintal in the international market. In comparison, last year about 8 lakh tonnes were exported out of the permitted 10 lakh tonnes, when international prices were around Rs 4,500 per quintal.
Industry experts said the war has increased export costs. Insurance premiums for cargo vessels have risen several times, and additional security expenses have also increased, making exports difficult.
With exports slowing down, about 15 lakh tonnes of sugar may now have to be sold in the domestic market. However, sugar prices in the country are already under pressure, and the additional supply could further reduce the chances of price recovery.
Speaking to Saamana, sugar expert Yogesh Pande said the government should consider creating a buffer stock of sugar to support farmers and sugar mills in the present situation.
