Sugar exports estimated at a record 9.5 million tonnes in 2021-22

Government says prices won't rise; closing stock levels seen among lowest in last 10 years

Sugar exports from India in the current marketing season that started in October is expected to be a record 9.5 million tonnes, but it might not lead to sharp escalation in domestic prices as production is expected to be better than anticipated, the Central government hoped.

It said sugar production in 2021-22 is expected to be around 13 per cent higher than the previous year at 35 million tonnes while opening stocks at the start of the year is estimated to be around 8.5 million tonnes.

This will mean a total availability of 43.5 million tonnes of sugar in 2021-22.

Of this around 27.8 million tonnes will be domestically consumed during the year while 9.5 million tonnes will be exported.

Therefore, leaving a closing balance of over 6 million tonnes of sugar in 2021-22.

“As such there will be smooth availability of sugar and sugar prices in the domestic market are expected to remain stable at reasonable levels,” the government said in an official statement.

The government estimates of closing sugar stocks in the 2021-22 season that will end in September is among the second lowest in last 10 years.

Normally, as per trade estimates, India requires around 4-4.5 million tonnes of sugar at the close of each season and this year’s estimated despite record exports is still on the higher side.