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Sugar exports from India, the world's largest producer and second biggest exporter of the sweetener, touched a record 8.6 million tonne till May of the ongoing 2021-22 marketing year ending September, said the latest data released by industry body ISMA on Wednesday.
The country had exported total 7 million tonne of sugar in the 2020-21 marketing year, while domestic production stood at 31.19 million tonne in the same period.
Last month, the government capped sugar exports at 10 million tonne to ensure enough domestic supply and check retail prices during festival season in October-November. However, cooperatives have demanded raising the export cap by 1 million tonne.
According to Indian Sugar Mills Association (ISMA), it is reported that around 9.4-9.5 million tonne of export contracts have already been entered into so far. Out of that, about 8.6 million tonne is reported to have been physically exported till end of May 2022.
About 16 million tonne of sugar is estimated to have been sold in the domestic market during the October-April period of the current marketing year, higher by 7,50,000 tonne from 15.26 million tonne in the year-ago period.
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Further, domestic sugar sales quota released by the government up to June is higher by 5,50,000 tonne as against corresponding period last year.
Considering this, ISMA estimates domestic sugar consumption in the current marketing year to be at 27.5 million tonne, as against 26.55 million tonne in the previous year.
According to ISMA, domestic sugar production has reached 35.23 million tonne till June 6 of the ongoing marketing year, as against 30.74 million tonne in the year-ago period.
"Since special season is in progress in Tamil Nadu and Karnataka and cane availability in these states is good for the remaining period up to end of current season, another about 6,00,000 tonne of sugar is expected to be produced collectively by these states," ISMA said.
Accordingly, ISMA has revised its all-India sugar production estimate for 2021-22 marketing year to 36 million tonne after considering diversion of 3.4 million tonne for ethanol.
The closing stock at the end of September is estimated to be around 6.7 million tonne which would be sufficient for 3 months of domestic consumption, it added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
