India’s sugar production has increased 42 percent year-on-year during the October-December period at 110.22 lakh tonne on higher cane output and an early start of mills in Maharashtra, according to trade data.
Sugar mills produced over 110 lakh tonnes (lt) of sugar in the first three months of the current sugar season — nearly 41.9 percent more than the corresponding period last year — and signed deals for exporting 10 lt of sugar already, said Indian Sugar Mills Association (ISMA) on Monday.
Around 481 mills currently crushing sugarcane in the country produced 110.22 as compared to 77.63. lt produced by 437 mills in the same period last year, an ISMA statement said.
Bright Export Prospects of Sugar in Future
Indian sugar mills have a brighter chance of securing more export deals this year as sugar production in Thailand, the second-largest exporter, is nearly 80-90. lt lower than the normal levels.
This opens up many markets to Indian sugar, including Indonesia and Malaysia, apart from traditional markets such as West Asia, Sri Lanka, Bangladesh and East Africa till the time Brazilian sugar hits the global market in March-April, the sugar industry body said.
However, the global sugar prices are expected to fall from April as the estimated sugar production is projected to be a record 380 lt and this could hit potential export prices for Indian millers in future.
As per reports, sugar production by 179 mills in Maharashtra was nearly 40 lt (16.5 lt). On the other hand, 120 Uttar Pradesh mills crushed enough sugarcane to produce 33.66 lt, which is marginally higher than what was produced in the corresponding period in the previous sugar season.
In Karnataka, sugar production so far was 24.16 lt which is nearly 8 lt more than the corresponding period last year. Other sugar producing States together produced nearly 12 lt till date, according to ISMA.
The world trade happens in relation to the futures prices in the London ICE exchange for white sugar and New York exchange for raw sugar, said ISMA. Currently, sugar contracts are happening in relation to the March futures, but in a couple of months, the same will happen with respect to May futures, which is substantially lower as compared to March futures.
“The global futures market is inverse and therefore, as the season progresses, the sugar export prices are expected to be lower as compared to what one is getting currently,” it said.
Source: ISMA
