India enters into deal for export of 3.5 MT sugar so far in 2022-23: ISMA

India has entered into a contract for export of about 35 lakh tonnes of sugar so far in the ongoing 2022-23 season, out of which 2,00,000 tonnes have been shipped last month, industry body ISMA said on Thursday.

The 2022-23 sugar export policy announced on November 5 allowed exports of 60 lakh tonnes of the sweetener on a quota-basis till May 31. Further quantities for export would be allowed after assessing the domestic production.

Sugar season begins from October to September.

According to Indian Sugar Mills Association (ISMA), "As per port information and market reports, about 35 lakh tonnes of contracts for export of sugar have already been entered into so far."

Out of this, about 2,00,000 tonnes sugar have been physically exported out of the country in October, when compared to about 4,00,000 tonnes in the corresponding month last year, it said in a statement.

ISMA noted several traders entered into export contracts for the 2022-23 season much before the export policy was announced by the government.

"Since then, there has been upward trend in international prices of sugar, as a result of which sugar mills are renegotiating export contract prices," it said.

The crushing operation has begun in the current 2022-23 season. Mills have produced 19.9 lakh tonnes of sugar till November 15 of the current season, slightly lower than 20.8 lakh tonnes in the year-ago period.

Several sugar mills in West started their operations late this season, because of which the sugar production till November 15 was slightly lower, it added.

In the 2021-22 season, the country had exported 11 million tonnes of sugar.