During the festival period of October and November, the demand for the commodity increases and therefore, the Centre is committed to ensure the availability of sugar for the lean period, he added.
The global situation reflects a shortage of sugar, especially due to lower production in Brazil. This may trigger a surge in global demand so the government issued an order to cap sugar exports upto 100 LMT in order to maintain domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September). Sugar exports to be all time high, despite a cap on exports, said the Ministry of Consumer Affairs, Food & Public Distribution.
India produced a record 355 LMT of sugar this year after discounting the diversion of about 35 LMT of sugar to the production of ethanol, which is the highest in the world. India is the second-largest exporter of the commodity.
The total exports of sugar in the current year are expected to be about 100 LMT. Current exports of 90 LMT has been contracted of which 82 has already been lifted, remaining 10 LMT can be exported. Average monthly consumption in India is around 23 LMT, sufficient domestic stock available, around 62 LMT.
The wholesale prices of sugar in India are range bound between Rs 3150 – Rs 3500 per quintal while retail prices are also within control in the range ofRs 36-44 in different parts of the country.
India’s sugar exports have gone from 0.47 LMT to 100 LMT in last five years, up by 200 times.