Fantastic start of new season in sugar: 1.5 million tonne deals in the export sector

- However, in the coming months, Thailand's competition with India in the world market is likely to increase

Recent trends in the country's sugar markets and industry have seen a rapid reversal. Corona infestation and lockdown has recently adversely affected the demand for bulk consumption from hotels, restaurants and various events in the sugar market but now between the end of the lockdown the process of reopening has started in various cities and states in the country. Getting started In addition, the demand for household goods has also increased. At a time when domestic sugar exports are on the rise, global demand for Indian sugar has also picked up. According to sugar market experts, sugar exports from India have increased to about 3 lakh tonnes in the year 2020-21. Considering that such exports were around 3 lakh tonnes in the previous sugar year of 2016-20, there are indications that the export of sugar from the country has increased by about 15 to 20 per cent in 2020-21. At the end of September 2021, the country's sugar season ended in 2020-91 and the total export of sugar from the country has increased to 2.50 lakh tonnes this season, sources said. Now the new sugar season 2021-2 has started from the month of October. Overseas demand in the country increased during the 2020-2021 season. The government also provided incentives for exports. According to the All India Sugar Trade Association, 3 million tonnes of sugar has been exported with the backing of government subsidies, while about 3 lakh 4,000 tonnes of sugar has been exported without the support of such subsidies. The country has exported about 15 to 18 lakh tonnes of sugar, mainly to Indonesia. India is the second largest producer of sugar in the world after Brazil. From India to Indonesia as well as Afghanistan, United Arab Emirates, Somalia v. Sugar exports have also increased. However, with the rise of the Taliban in Afghanistan, there are growing doubts about how exports will go. Meanwhile, with the start of the 2021-22 sugar season, there is talk in the market that about 1.5 million tonnes have been traded for export.

Meanwhile, according to indications flowing from the world market, sugar production in Thailand has been found to be higher than expected and this is likely to create new competition in the world market for Indian exporters in the form of Thailand. According to the Indian Sugar Mills Association, apart from Australia's competition with India in the world market for sugar exports, there are also indications that Thailand's competition is now being challenged. As the distance from Thailand to Indonesia is less than the distance from India to Indonesia, shipping to Thailand may be cheaper than to India for exporting sugar to Indonesia and this may make it easier for exporters to export sugar from Thailand to Indonesia. According to indications from the Thai sugar industry, sugar production is expected to increase by about 30 to 5 per cent to 100 lakh tonnes.

Meanwhile, according to the International Sugar Organization (ISO), global demand is likely to be higher than the total supply of sugar in the 2021-2 season. If there is such a supply deficit globally, it will prove to be a positive factor for sugar exports from India, said sources in the domestic sugar market. In addition to Thailand, Australia, Pakistan, Mexico v. Sugar production in the countries is also expected to be higher than expected, the ISO said. According to sources in the Thai sugar market, the total annual consumption of sugar at home is about 3 million tonnes, so Thailand will have a surplus of about 3 million tonnes of sugar, which will be dumped on the world market by Thailand. Exports of sugar from Thailand are expected to increase by about 3 million tonnes in 2021-22 compared to 2050-31. Market experts say this could adversely affect exports from India to Indonesia. Sugar exports from Brazil to the world market are expected to grow by mid-208, and Indian exporters will have to step up their efforts to send more sugar to the world market in the meantime, experts said. Sugar exports from India to Bangladesh are likely to improve. World sugar prices have risen by about 5 to 20 per cent in four months.