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India set to allow 5 mn tonnes of sugar exports in first tranche

India set to allow 5 mn tonnes of sugar exports in first tranche

The Hindu
Wednesday, September 14, 2022 4:44 PM GMT

India is poised to allow 5 million tonnes of sugar exports in the first tranche for the new marketing year

India is poised to allow 5 million tonnes of sugar exports in the first tranche for the new marketing year beginning October, two government sources said on Wednesday.

“The permission to export 5 million tonnes of sugar is expected in the coming weeks and once we have a better sense about next sugar year’s production, we could allow another 3 to 5 million tonnes for exports,” said one of the sources who did not wish to be named in line with official rules.

“Although it is a little early to get a clear idea about next year’s production, early estimates suggest sugar output in 2022-23 would hover around this year’s record 36 million tonnes, the official said.

On Oct. 1, 2022, when the new season begins, mills’ carryover stocks from the previous season are expected at 6 million tonnes against 8 million tonnes a year earlier.

“After factoring in local demand, the need for ethanol production and mills’ requirement for their yearly carryover stocks, we believe that India will have a large exportable surplus in the 2022-23 year,” said the second source.

“But given the erratic weather patterns impacting crops and agricultural production, we do not want to allow exports of 8 or 9 million tonnes in just one go,” the second source said. “We’ll be rather cautious.”

India banned wheat exports earlier this year and last week imposed curbs on rice shipments as adverse climatic conditions hit output and planting.

Read full story on The Hindu
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