India's sugar export is estimated to decline to 5-6 million tonnes in the current marketing year ending September from a record 7.1 million tonnes in 2020-21, according to an industry body.
Addressing a webinar organised by industry body ISMA, Indian Sugar Exim Corporation (ISEC) MD and CEO Adhir Jha said the country is likely to export 5-6 million tonnes of sugar in the 2021-22 marketing year (October-September).
Asked about the reason for fall, he highlighted that the India does not need to export 7 million tonnes in the current season as the country is diverting surplus sugarcane molasses for ethanol manufacturing.
Jha also added that the export market for India would also get squeezed because of higher exports expected from Thailand.
"We don't need to export 7.1 million tonnes in 2021-22. Our surplus is manageable," he said.
Jha said India will need better export price in the current season due to higher transportation cost amid rising fuel prices.
The ISEC's MD and CEO said that international prices are better than a year ago and there are early demand indications from importers.
"Mills are willing to contract supply early," he added.
ISEC was formed in 1969 by the two apex bodies of the sugar industry -- the National Federation of Cooperative Sugar Factories Limited (NFCSF), and the Indian Sugar Mills Association (ISMA), for undertaking export of sugar and its by-products.
India's sugar export rose 20 per cent to an all-time high of 7.1 million tonnes in the 2020-21 marketing year ended last month on the back of better demand and financial assistance from the government.
Sugar exports stood at 5.9 million tonnes in the 2019-20 marketing year.
According to ISMA, the sugar production is estimated to remain flat at 31 million tonnes in the 2021-22 marketing year.
The total availability of sugar is estimated to touch 39.5 million tonnes, including an opening stock of 8.5 million tonnes of sweetener.
The domestic consumption is estimated at 26.5 million tonnes while exports are estimated at 6 million tonnes. The closing stock would be 7 million tonnes at the end of this marketing year.
On ethanol blending with petrol, ISMA said the blending level will reach 8.5 per cent in 2020-21 ethanol marketing year ending November with supply of 3.25 billion litre to oil marketing companies (OMCs).
In the next 2021-22 ethanol marketing year, the blending level is estimated to reach 10 per cent with supply of 4.25 billion litre to OMCs.
Source:economictimes.com