india-to-export-7-00-000-tonnes-sugar-this-season

India, the world's second-largest sugar producer, is expected to export between 600,000 and 700,000 metric tonnes of sugar during the current season, which ends in September.

 

This is despite the government having authorised up to 1 million tonnes of exports earlier this year.

 

Kiran Wadhwana, a member of the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and Executive Director of International Trading Co, made the announcement during the S&P Global sugar conference held in Geneva.

 

He noted that actual exports are likely to fall short of the approved quota, largely due to revised estimates of domestic production.

 

The Indian government had originally granted the export permission in January, believing that there was sufficient surplus to serve international markets.

 

However, since then, industry bodies have significantly reduced their production forecasts, triggering concerns about potential shortages within the domestic market.

 

Sugar production in India is subject to strict government control. Authorities not only set the price that sugar mills must pay to cane farmers but also regulate how much sugar mills are allowed to sell in the open market.

 

These regulatory measures are designed to ensure price stability for consumers and consistent income for growers, though they often limit the flexibility of the industry in responding to global demand.

 

Wadhwana’s comments reflect the growing uncertainty within the sector. With the monsoon season and crop cycles influencing sugarcane yields, unexpected weather patterns or other agricultural challenges could further impact final output levels.

 

India's export figures are closely watched by global markets, especially as the country plays a crucial role in meeting international demand.

 

A reduced export volume from India could potentially influence global sugar prices, particularly if other major producers such as Brazil or Thailand also experience production challenges.

 

As the season progresses towards its close in September, stakeholders in both domestic and international markets will be watching closely to see if export volumes align with current projections or deviate further due to unforeseen developments in production or policy.