Sugar Rush going to increase around the world as India becomes the world’s largest sugar producer Among uncountable edible things available for human consumption in today’s time, water, salt, and sugar will always be the base and the essentials in the life-saving kit. In India, sugar production and export have always been a major source of earning the Gross Domestic Product (GDP). Today India stands as the largest producer of sugar and the 2 nd largest sugar-exporting country in the world. The current position of sugar manufacturers in the current global market scenario is benefitting all, be it the new sugar manufacturers or the company that is known as the first branded sugar in India. Let’s know some more facts about sugar exports in India.
There has been a recent rise in the exports of sugar! Recently the exports of sugar jumped 57% to 109.8 lakh tonnes. It was during the 2021-22 marketing year that ended this September. This achievement has made India, the world’s 2nd largest exporter of sugar. The past figures were 70 lakh tonnes in 2020-21, 59 lakh tonnes in 2019-20, and 38 lakh tonnes in 2018-19. The above information is as per the data mentioned in a recent report by the online daily of The Economic Times.
Causes of rise in demand Many sugar mills have attempted to renegotiate their contracts for export due to the increase in demand. Apparently, exporters were trying to command higher prices for exports. A lower price was paid by mills in the past for sugar exports than what is charged now. The international market for sugar has gone up a few cents following the increase in demand, with a significant number of mills trying to rework their contracts. As a result, the international market has been affected. There is also the risk that future agreements will be affected, in addition to a price increase.
Future of sugar exports If reports are to be believed, the net sugar production in 2022-23 before it is diverted to ethanol production is estimated to be higher by about 5% at around 4.1 crore tonnes. It is against 3.92 crore tonnes in 2021-22. Also, in 2022-23, since the target of 12 percent blending is expected to be achieved, about 545 crore liters of ethanol would be supplied.