Rising demand for sugar before Diwali: However, challenges for India in the export market have increased

- Exports from the country are likely to fall from 3 lakh tonnes to 5 million tonnes in the first phase of the new sugar season.

Traders and the industry have been keeping a close eye on the Diwali festivities in the country's sugar markets. There have been indications of an increase. In such an environment, seasonal demand has recently increased during Navratri and Dussehra festivals and this has led to high optimism even before Diwali, market experts said. In the pre-Diwali sugar market, bulk consumer buying and inquiries have been seen in the market. There have been recent indications of increased demand for sugar from confectionery manufacturers and the confectionery industry, which makes chocolate-biscuits. However, market insiders fear that the demand for sweets and chocolate-biscuits will slow down as Diwali dries up.

Meanwhile, the new sugar season has started in the country with the onset of October. With the recent rise in sugar exports from the country, now that the new season has begun, the question of whether sugar exports will be as high or lower as in the new season has been raised in the market and in the industry recently. It is learned that the secretary of the food ministry of the central government has expressed fears of various challenges in the new sugar season 2021-2 for the export of sugar from the country. Recently, the Global Sugar of the All India Sugar Traders Association reported that he had expressed such an opinion. In the last sugar season 2020-21, the country exported about 3 lakh tonnes of sugar and most of these 2 lakh tonnes were exported to Sri Lanka, Indonesia and Afghanistan. However, the equations have changed recently in these three countries and new challenges have arisen in these three countries, which is likely to affect sugar exports from India to these countries.

In addition, Thai sugar in the world market was lower than expected last season, but according to recent revelations, sugar production in Thailand has now increased. Earlier, sugar exports from Thailand were mainly to Indonesia, but last season, due to lower production in Thailand, Indonesia imported sugar from India. Now production is increasing in Thailand. Then Thai sugar is more likely to go to Indonesia. And if that happens, experts say sugar exports from India to Indonesia are likely to be affected. In addition, the Taliban regime in Afghanistan has changed the political situation there and created an atmosphere of instability. As a result, there are fears that sugar exports from India to Afghanistan will also be affected. Meanwhile, according to news from Sri Lanka, there is a severe shortage of foreign exchange. As a result, sugar exports from India to Sri Lanka are also expected to be adversely affected. Thus, in countries where sugar exports from India were special last season, various problems have arisen and in such an environment, Indian exporters now have to find new options to maintain the volume of sugar exports from India. However, there are indications that about 1.5 million tonnes of sugar has been exported from the country even before the start of the new season. In view of this, it is likely to export 4 million tonnes of sugar in the new season, said Sudhashu Pade, secretary, Ministry of Food and Public Distribution. Meanwhile, ethanol production in the country is also increasing. As a result, about 4 lakh tonnes of sugar is likely to be diverted to ethanol. By 205, such diversion is likely to reach 3 million tonnes. In the sugar sector in the country, 50 million farmers and their families have been dependent on the sugar industry. According to Joint Secretary (Sugar) IAS Subodh Kumar Singh, there is no proposal to extend the subsidy for sugar exports. The country has been in a surplus of sugar for the last 10 years. However, the stock of the previous season has been increasing every year with the balance at the beginning of the new season.