Synopsis
According to Praful Vithalani, chairman, All India Sugar Traders Association (AISTA), there will not be any major impact on the ongoing sugar exports as agreements for 57 lakh tonnes of sugar exports have been executed till May 19 nor there will not be any impact on domestic prices as these are controlled by the monthly release mechanism.
Agencies
According to trade estimates, the government will be able to save an outgo of Rs 60 crore of the sugar export subsidy.
The central government today slashed the amount of subsidy given for sugar export by one third from Rs 6000/tonne to Rs 4000/tonne. As the industry has completed export of 95% of the sugar export quota of 60 lakh tonnes, the decision will not have any major adverse impact on the country s sugar exports. The industry is confident about continuing exports under the open general license (OGL) category thanks to better realisation from exports.
India s sugar exports seen lower than last season on logistics woes
India’s sugar export chances were also seen bright since for the second consecutive year sugar production in Thailand, which accounts for 80-85 percent Indonesia’s sugar imports, is expected to be low. February 11, 2021 / 06:31 PM IST
India’s sugar exports are likely to be at least 25 percent lower during the current sugar season (October 2020-September 2021) owing to “logistics constraints”, particularly due to shortage of container and increase in waiting time for vessels, according to All India Sugar Trade Association (AISTA).
AISTA crop committee, which met on February 6 and made a detailed assessment on production and balance sheet on the commodity, expects sugar exports to drop to 43 lakh tonnes this season against 57 lakh tonnes last season.