 "Sugar exporters to meet on Monday to evolve strategies to boost exports")
Over 400 sugar producers and intermediaries are congregating here on Monday to evolve strategies to boost India's sweetener exports in the current crushing season which began in October.
The government in March 2018 had allowed 2 million tonnes of sugar exports under the Minimum Indicative Export Quota (MIEQ) to be executed by September. But, given the poor execution of this exports quantity, the government in August this year extended the deadline by three months to December 2018. Under MIEQ, sugar exports are allowed on ‘nil duty’ on a condition to import similar quantity within a stipulated time in future.
But, Indian sugar mills and intermediaries have so far executed orders to the tune 500,000 – 600,000 tonnes due to weak global prices on supply glut. Given that sugar industry in India is passing through over 10 million tonnes of carry over stock with another 32 million tonnes of estimated output for the crushing season October 2018 – September 2019, it is important to evolve strategies to execute full quantity of MIEQ sugar. India’s sugar output was reported at 32.25 million tonnes for the sugar season 2017-18 (October – September) against the country’s annual consumption of 25 million tonnes.
At a curtain raiser event, Praful Vithalani, Chairman of the All India Sugar Trade Association (AISTA), said, “The congregation is will serve sugar sector in several ways. Over 400 buyers and sellers are expected to attend the event to draw a roadmap for India’s sugar exports. Ports and quality surveyors will not only share their domain expertise but also be at hand to answer queries.”
The government has already announced several incentives in the past few months to allow sugar mills get rid of surplus stocks. Interestingly, Pakistan is also facing similar supply glut and hence, looking to transport around 1.5 million tonnes. The only good new Indian exporters might be enjoying is lower forecast of Brazilian sugar productin this year as the South American country’s government promotes ethanol production to reduce its oil bill. Europe and Australia have suffered heat waves resulting into lower their potential sugar output.
Organised jointly by AISTA and Maharashtra Rajya Sakhar Sangh, the event is being attended by key government officials.
Vithalani added that the evolving global sugar situation has already created headroom for Indian sugar.
The government in March 2018 had allowed 2 million tonnes of sugar exports under the Minimum Indicative Export Quota (MIEQ) to be executed by September. But, given the poor execution of this exports quantity, the government in August this year extended the deadline by three months to December 2018. Under MIEQ, sugar exports are allowed on ‘nil duty’ on a condition to import similar quantity within a stipulated time in future.
But, Indian sugar mills and intermediaries have so far executed orders to the tune 500,000 – 600,000 tonnes due to weak global prices on supply glut. Given that sugar industry in India is passing through over 10 million tonnes of carry over stock with another 32 million tonnes of estimated output for the crushing season October 2018 – September 2019, it is important to evolve strategies to execute full quantity of MIEQ sugar. India’s sugar output was reported at 32.25 million tonnes for the sugar season 2017-18 (October – September) against the country’s annual consumption of 25 million tonnes.
At a curtain raiser event, Praful Vithalani, Chairman of the All India Sugar Trade Association (AISTA), said, “The congregation is will serve sugar sector in several ways. Over 400 buyers and sellers are expected to attend the event to draw a roadmap for India’s sugar exports. Ports and quality surveyors will not only share their domain expertise but also be at hand to answer queries.”
The government has already announced several incentives in the past few months to allow sugar mills get rid of surplus stocks. Interestingly, Pakistan is also facing similar supply glut and hence, looking to transport around 1.5 million tonnes. The only good new Indian exporters might be enjoying is lower forecast of Brazilian sugar productin this year as the South American country’s government promotes ethanol production to reduce its oil bill. Europe and Australia have suffered heat waves resulting into lower their potential sugar output.
Organised jointly by AISTA and Maharashtra Rajya Sakhar Sangh, the event is being attended by key government officials.
Vithalani added that the evolving global sugar situation has already created headroom for Indian sugar.
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