Sugar export from India increases, though the production is expected to fall
India’s sugar exports have increased even though the production of the same has seen a considerable low. The second largest producer of sugar in the world is likely to see an increase of more than 80% at 20 lakhs tonnes in the year 2015-16. However, the production of sugar in the marketing year is expected to see a decrease of 9%. The increase in sugar exports and the toughening of international prices for sugar would help sugarcane mill owners to settle their sugarcane arrears. The exports contracts received by the mills is for 14 lakhs tonnes since October. However, there are chances of shipping another five to six lakh tonnes by the end of September. The Indian Sugar Mills Association (ISMA) reported that during the marketing year 2014-16, the mills have exported around 11 lakh tonnes of sugar only. The center has asked the mills to increase its exports to 40 lakh tonnes in 2015-16, in order to clear their huge outstanding payments to the farmers. Also the strengthening of prices in the international markets witnessed the sugar mill stocks gather strength. The International Sugar organization foresees an increase in supply globally at 5 million tonnes this marketing year, when compared to 3.5 million tonnes in November due to a slump in production in Thailand, India, European Union and Brazil. However, the Indian production has fallen for the first time this year with the output falling 221.30 million tonnes till March 15, when compared to 221.57 lakh tonnes during the previous period. India Sugar Mills Association (ISMA) also anticipates a fall of around 9% in the year 2015-16.
March 19, 2016 | 04:45pm IST