The Indian Sugar Mills Association (ISMA) on Wednesday said the Indian government is expected to allow additional 2-4 million tonnes of sugar exports in the 2022/23 season. This move will leave total exports at 8-10 million tonnes and below last year’s level.
The government earlier this month had given a green signal to the first tranche of exports for 2022/23 at 6 million tonnes in a move that helped cap recent upward pressure on benchmark ICE sugar prices.
“Definitely there will be a second tranche between 2-4 million tonnes, depending on production,” Aditya Jhunjhunwala, president of ISMA, told Reuters on the side-lines of the International Sugar Organisation seminar in London.
Jhunjhunwala pointed out that India would likely produce 36 million tonnes of sugar and 5 million tonnes of ethanol.
Indian consumption is at around 27-27.5 million tonnes, so that leaves 8.5-9 million tonnes for export, he said, adding mills have already signed contracts to export 4 million tonnes of sugar.
India is world’s biggest sugar producer and the second biggest exporter behind Brazil. In the last year’s season (2021-2022), It had exported more than 11 million tonnes of sugar.
Source: KNN Bureau