Food Secretary Sudhanshu Pandey has said that India's sugar exports are on a ‘good course’ this year as traders have contracted over 50 lakh tonnes of the sweetener so far. The government has fixed a mandatory export target of 60 lakh tonnes of surplus sugar for the ongoing 2020-21 season (October-September). However, this export policy was approved only in January.
During the 2019-20 season, India, the world's second-largest sugar-producing nation after Brazil, had shipped 59 lakh tonne of the sweetener. He said the mandatory sugar export policy was announced to support the sugar industry. The cash-starved mills were allowed to earn from the export to ensure they make timely payment to sugarcane growers. Besides exports, mills were also encouraged to divert to ethanol production.
According to the All India Sugar Trade Association (AISTA), export contracts for 56 lakh tonnes of sugar have already taken place from India so far. Out of which, about 34.78 tonne of sugar has been shipped, while 4.43 lakh tonne of the sweetener is under loading and another 4.54 lakh tonne is in transit or for delivery to port-based refinery. In total, 43.76 lakh tonnes of sugar has been dispatched from mills for export purpose so far this season.
However, AISTA expressed concern about high freight rates although the availability of containers has increased. The trade body added India is left with 4 lakh tonne of sugar to be contracted under the existing policy for which contracts may conclude soon. Much of the sugar has been exported to Indonesia, Afghanistan and the UAE so far this year.