Global sugar market awaits India’s position on 2020-21 export subsidy

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PUNE: Indian exporters as well as buyers in the global sugar market are eagerly awaiting the announcement of India’s export policy, traders said. Even after 20 days into the new sugar year, which started on October 1, India has not signed any export contracts as there is no clarity on the export subsidy which was extended to over the past two years, they said.

Some exporters, however, have said that even without the subsidy, world prices can support Indian exports and help boost sales of raw sugar.

India has offered incentives for sugar exports, as the country has consistently produced excess sugar for several years. In October 2019, the millers had signed export contracts for around 800,000 tonnes of sugar after the government announced the continuation of exports. Of the 6 million tonnes of quota granted for export by the government, the industry exported 5.9 million tonnes of sugar in 2019-2020.

As the country expects to produce 31 million tonnes of sugar in the 2020-21 season, with forecasts of a further increase in sugar cane plantations for the 2021-22 season due to excessive rainfall, all stakeholders agree that exports must continue.

The Indian Sugar Mills Association said in a statement this week: “We expect much higher production in the 2020-21 sugar season. India will have to continue to export around 60 lakh tonnes of excess sugar out of the country. ”

Praful Vithalani, Mumbai-based sugar trader, said: “This year India was unable to sign any sugar export contracts. We are waiting for the export policy and incentives will be needed to make exports feasible.

Industry sources said the announcement of the ctgr’s new policy has been delayed due to state assembly elections in Bihar as the state owns a few sugar factories. The announcement of any political decision may not fall within the code of conduct.

Even if the incentives are not declared, international prices can rise, making exports possible, part of the traders said. “Foreign buyers make contracts in October and November for raw sugar, and millers also need to prepare for raw sugar production. The government should declare its export policy, with or without a subsidy, so that the millers can seize the current opportunity to export sugar, ”said Abhijit Ghorparde, a Maharashtra-based sugar broker.

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