India's sugar exports soars to 43 LT till first week of Aug

India's sugar exports have reached about 43 lakh tons till first week of August in the current 2007-08 season, which is more than double from the entire shipments last season.

"Sugar exports have reached to about 43 lakh tons in this season, of which white sugar contributed 18 lakh tons while raw sugar was over 24 lakh tons," an industry official said.

The sugar exports by the end of this season, which runs from October to September, may cross 45 lakh tons (LT) as shipments have slowed down with surge in domestic prices, he added.

Unlike most other countries, India produces white sugar generally, which has a limited export market. However, for the first time in the history of sugar industry, raw sugar exports is being undertaken in sizable quantities this season.

Indian raw sugar is competitive in the Middle East and other Asian markets such as UAE, Saudi Arabia, Iran, Egypt, Malaysia, Indonesia, Bangladesh and China. Some quantities are also exported to African countries.

The industry estimates that sugar exports could decline significantly in the next season as production is projected to decline and the central assistance offered to the exporters is also in all probability coming to an end in September.

Indian Sugar Mills Association Director General S L Jain had said exports could drop to around 15 LT in 2008-09 season starting from October.

"The domestic prices have gone up while the global market has softened. The price-parity should be there for making exports," he had said.

According to industry, the sugar production is seen at 200 LT in 2008-09 season, while the government has pegged the output at 220 LT. The projections are much below this year's output pegged at 265 LT.