India's sugar exports at record 8.6 mn tonne till May this year: ISMA

Sugar exports from India, the worlds largest producer and second biggest exporter of the sweetener, touched a record 8.6 million tonne till May of the ongoing 2021-22 marketing year ending September, said the latest data released by industry body ISMA on Wednesday.The country had exported total 7 million tonne of sugar in the 2020-21 marketing year, while domestic production stood at 31.19 million tonne in the same period.Last month, the government capped sugar exports at 10 million tonne to ensure enough domestic supply and check retail prices during festival season in October-November.

Sugar exports from India, the world's largest producer and second-biggest exporter of sweeteners, touched a record 8.6 million tonnes by May of the ongoing 2021-22 marketing year ending September, said the latest data released by industry body ISMA on Wednesday.

The country had exported a total of 7 million tonnes of sugar in the 2020-21 marketing year, while domestic production stood at 31.19 million tonnes in the same period.

Last month, the government capped sugar exports at 10 million tonnes to ensure enough domestic supply and check retail prices during the festival season in October-November. However, cooperatives have demanded raising the export cap by 1 million tonnes.

According to the Indian Sugar Mills Association (ISMA), it is reported that around 9.4-9.5 million tonnes of export contracts have already been entered into so far. Out of that, about 8.6 million tonnes are reported to have been physically exported by the end of May 2022.

About 16 million tonnes of sugar is estimated to have been sold in the domestic market during the October-April period of the current marketing year, higher by 7,50,000 tonne from 15.26 million tonnes in the year-ago period.

Further, the domestic sugar sales quota released by the government up to June is higher by 5,50,000 tonnes as against the corresponding period last year.

Considering this, ISMA estimates domestic sugar consumption in the current marketing year to be at 27.5 million tonnes, as against 26.55 million tonnes in the previous year.

According to ISMA, domestic sugar production has reached 35.23 million tonnes by June 6 of the ongoing marketing year, as against 30.74 million tonnes in the year-ago period.

''Since the special season is in progress in Tamil Nadu and Karnataka and cane availability in these states is good for the remaining period up to the end of the current season, another about 6,00,000 tonnes of sugar is expected to be produced collectively by these states,'' ISMA said.

Accordingly, ISMA has revised its all-India sugar production estimate for the 2021-22 marketing year to 36 million tonnes after considering the diversion of 3.4 million tonnes for ethanol.

The closing stock at the end of September is estimated to be around 6.7 million tonnes which would be sufficient for 3 months of domestic consumption, it added.