India Sets To Export Record 8 Million Tonnes Of Sugar In Two Tranches
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India is expecting a robust market for sugar. In line with this expectation, the government has approved the expansion of its sugar export to 6 million tonnes.
The second most populous country in the world had a record export of sugar in 2021/2022. The industry was expecting a further increase to about 9 million tonnes this year in two separate tranches. India is the world’s largest producer of sugar and presently the second largest exporter, behind Brazil and Thailand.
In a notification, the Indian government revealed that New Delhi has allocated 6 million tonnes of sugar to mills based on the production in the past three years.
India Sets To Hit Record Export Of Sugar In Two Straight Years
Officials in the sugar industry believe that the government will allow about 6 million tonnes of sugar in the first tranche, and an additional 2 to 3 million in the second tranche, considering the production level.
The notification didn’t specify whether there is a plan by the government to approve a second tranche. However, sources from the industry and the government expect a second tranche due to the expected record level of sugar production in the country.
If India hits another record in sugar production, it will be the second consecutive year that the production record will be broken.
For the season that started on October 1, India is expected to produce around 36.5 million tonnes of sugar, according to a leading industry body.
The Government Will Likely Approve Two Tranches
A senior industry official who spoke under anonymity claimed that the government has assured the industry that exports will be allowed for the second tranche. The allocated quota needs to be exported either by mills or through refineries before May 31, 2023, according to the government notification. In anticipation of the massive opportunity to make more money through more exports, traders have started signing export deals.
President of the All India Sugar Trade Association, Praful Vithalani, stated that Middle Eastern countries, African, and Asian countries are the major importers of India’s sugar. He added that by the time Brazil’s supplies reach the global market, India may have already exported 6 million tonnes of sugar.
