With higher demand from overseas amid global deficit of 8-9 million tonne (MT), industry body the Indian Sugar Mills Association (ISMA) has said that sugar exports of India are likely to cross 5 MT in the current marketing year (October-September). For the current year, the government has allowed export of 6 MT of sugar under Maximum Admissible Export Quota (MAEQ) to help deal with the surplus sugar. The country had exported 3.8 MT during 2018-19 marketing year against the mandatory quota of 5 MT. The country's sugar production has reached 16.98 MT till February 15 of the current marketing year, which is much lower than 21.96 MT output till the same period a year ago.
According to ISMA, global sugar prices for raw and white sugar are 20-25 per cent higher than the prices which prevailed three months ago when India started its exports against 6 MT under MAEQ. Accordingly, Indian sugar exports may get accelerated in the coming months, and could achieve more than 5 MT of MAEQ in the whole season. Industry body said as per market reports, about 1.6 MT of sugar has been exported from India and about 3.2 MT of contracts have been signed for exports. It added that as per reports available, few sugar mills are not planning to export sugar against their allocated export quotas. A few of them have surrendered a part of their MAEQ to the government.
ISMA said the government has decided to withdraw and reallocate export quota of mills which were not able to undertake shipments. 20 per cent of export quotas of mills which have not contracted for 25 per cent of their MAEQ by end of January 2020, will be withdrawn and reallocated among the others who have exported most of the MAEQ and are willing to export beyond their original MAEQ. ISMA said total sugar production has reached 16.98 MT till February of this marketing year, lower from 21.96 MT in the year-ago period.
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