Indian sugar exports are expected to top seven million tonnes (mt) this season to September 30, while next season shipments are expected to be at least six MT with global prices ruling near 4-1/2-year high, industry officials say.
‘We shipped 4.5 lakh tonnes of sugar that remained to be exported last season (October 2019-September 2020) under the Centre’s scheme to get assistance for such exports. This season, we have exported six mt under a similar assistance scheme. Besides another seven lakh tonnes will be exported under open general license (OGL) by September 30. Overall, we will export 7.15 mt this season,’ said Praful Vithalani, President, All India Sugar Traders Association (AISTA).
India is expected to withdraw sugar export subsidies from the new season beginning October as a sharp rise in global prices makes it easier for Indian mills to sell the sweetener on the world market.
India, the world’s biggest sugar producer after Brazil, incentivized overseas sales for three years in a row, helping New Delhi emerge as a significant, stable exporter of the commodity.
Rival suppliers have often opposed India’s sugar export subsidies. After protests from Brazil, Australia, and Guatemala, the World Trade Organization (WTO) in 2019 decided to set up panels to rule on complaints against India’s export subsidies for sugar.
India has maintained that its sugar export subsidies do not violate WTO rules.
“The demand for Indian sugar is going to be higher, so (global) prices .