India is set to permit the export of 1 million metric tons of sugar during the current season, according to government and industry sources. The move aims sugar mills clear surplus stock an help bilize domestic prices, even as production is expected to fall below consumption for the first time in eight years.
Key Highlights
1. Export Authorization
• The government is expected to issue an official order s allowing sugar mills to export 1 million tons of sugar.
• This decision marks a significant shift, as no exports were allowed during the 2023-24 marketing year.
2. Impact on Global Markets
• India's re-entry into the export market could exert downward pressure on global sugar prices,given its significant role as the world's second-largest sugar producer.
3. Support for Domestic Mills
• The export allowance offers relief to sugar mills struggling with low domestic prices, currently at their lowest in 18 months.
• Industry experts believe this limited export could provide a financial boost, especially as next year's production outlook is optimistic.
Production and Consumption Dynamics
Consumption Trends
• Domestic consumption is estimated at over 29 million tons, indicating a potential shortfall for the first time in nearly a decade.
India's Position Global Sugar Trade
• Between 2017 and 2023, India emerged as the second-largest exporter of sugar, shipping an average of 6.8 million tons annually.
• Key export markets include Indonesia, Bangladesh, and the UAE.
• The decision to resume exports, albeit at limited volumes reflects India's
