62 lt sugar export contracts signed till date

According to the All India Sugar Trade Association (AISTA) outlook on sugar production and export in 2021-22 season released on March 7, the physical sugar dispatches from sugar mills exclusively for export of sugar are placed at 52.78 lakh tonnes (lt).

Out of this, the total physical sugar exports are 47.84 lt. Of this, 40.07 lt of sugar shipment has been exported by sugar mills and merchant exporters directly and 7.77 lt of sugar delivered to Indian refineries for refining and export (deemed export). 4.94 lt was under loading/waiting to load.

Till date, contracts worth 62 lt for the export of sugar have been signed. The sugar season runs from October to September. In 2020-21, India had exported 72.30 lt of sugar in the entire sugar season.

According to AISTA, sugar production estimates have provisionally revised to 335 lt for the 2021-22 sugar season. This is due to the extended crushing season in Maharashtra and Karnataka.

AISTA says that the Russia-Ukraine war has created aberrations in the commodities market. The crude oil prices have suddenly jumped, making the production of ethanol attractive. On Monday, the crude oil prices reached as high as $139 per barrel.

Also, the international price of raw sugar for the May contract was quoted at 19.80 cents per pound on March 4 at 1500 hrs IST on the Intercontinental Exchange (ICE), New York. The high international sugar price coupled with a weak Indian Rupee have made the exports of sugar attractive, says AISTA. The dollar has crossed the 77-rupee mark.