Since there is no parity on exports of raw sugar due to high cost of sugarcane in India and depressed global prices, the Indian exporters see a little benefit in exporting raw sugar to overseas markets
The Dollar Business Bureau
India’s sugar production grew by 6.5% to 7.98 million tonnes during the first three months of 2015-16 season beginning October compared to the last season, adding to the already piled up stock of the sweetener amid export slump.
Sugar output during October-December period in 2014-15 was 7.49 lakh tonnes.
Among the sugar producing states, Maharashtra topped the list with 3.37 lakh tonnes, followed by Uttar Pradesh with 18.32 lakh tonnes and Karnataka with 1.24 lakh tonnes, as on December 31, 2015.
Other major producers including Gujarat, Andhra Pradesh and Telangana, and Tamil Nadu also contributed significantly to the overall sugar production during the period.
“Sugar production in other states viz. Bihar, Haryana, Punjab, Uttarakhand and Madhya Pradesh remained almost at the same level,” Indian Sugar Mills Association said in a statement.
Indian sugar mills have received export orders of about 0.8 million tonnes and have physically dispatched around 0.3 million tonnes so far.
Though domestic ex-mill sugar price have improved in the past fortnight, the all India average ex-mill price of sugar for the period October - November 2015 continued to be below the average cost of production of sugar.
India is currently exporting white sugar as sugar mills in India have produced almost negligible quantum of raw sugar. Since there is no parity on export of raw sugar due to high cost of sugarcane in India and depressed global prices, the Indian exporters see little benefit in exporting raw sugar to the overseas markets.
India’s annual sugar production is estimated to around 3 million tonnes higher than the domestic requirement. In the last couple of years, stockpiling of sugar has become a major challenge for the government, while millers have been struggling to offset their stocks in the wake of global demand slump and clear payments to sugarcane farmers.
Indian sugar mills have received exports orders of about 0.8 million tonnes and have dispatched around 0.3 million tonnes so far
January 06, 2016 | 02:20pm IST