Resumption of sugar imports by Pak to open another market for India: ISMA

Indian Sugar Mills Association (ISMA) on Thursday said the resumption of sugar imports by Pakistan will open another market for India and help meeting the country's export target of 6 million tonnes by September-end this year.

The Pakistan government has allowed the import of 5,00,000 tonne of sugar, and has recently permitted sugar imports from India too, it said.

''This resumption of sugar imports by Pakistan will open another market for sugar exports from India and will help ensure that the target of 6 million tonnes of sugar exports is met by September 2021,'' ISMA said in a statement.

India has fixed a mandatory export quota of 6 million tonnes for the ongoing 2020-21 season (October-September).

According to ISMA, Indian millers have responded well to this year's export program, even though the quota was announced at the end of December 2020.

''Market reports are encouraging, which indicates that contracts of about 4.5-4.6 million tonne have already been made so far,'' it said.

Further, the reportedly delayed start of mills in CS Brazil for the 2021-22 season, which begins on April 1, 2021, may further improve the chances of enhanced contracts in the next one-two months, it added.

On sugar export to Iran, ISMA said it is learned that the Indian government is working to find alternate currency exchange options to facilitate sugar exports to Iran and ''we are hopeful of an early solution''.

As per the ISMA's latest data, sugar output has increased to 27.75 million tonnes till March of the ongoing 2020-21 season, from 23.31 million tonnes in the year-ago period.