New Delhi: Sugar season is round the corner, and mills in India are leaving no stone unturned to lock in deals with buyers to commence sugar export. According to the reports, Indian mills are likely to export Iran, China, and other countries from October 1. Sugar mills in India are eyeing to export sugar surplus in a bid to reduce the glut. Also, producers are in talks with importers in West Asia, East Africa, Bangladesh, and Sri Lanka.
To reduce the sugar surplus, the government last month announced 60 lakh tonne sugar export subsidy for 2019-20 sugar season. The policy involves an export subsidy of Rs 10,448 per metric tonne (mt) to sugar mills. The total estimated expenditure government will bear Rs 6268 crore.
Experts believe sugar mills will try to export surplus sugar until April when supplies from Brazil start to flood the market.
While Indian sugar mills are happy with the export, other rival countries are apprehensive that higher exports from India may put further pressure on global prices. Many rival countries had already objected to IndiaтАЩs sugar subsidies. Claiming IndiaтАЩs subsidies are inconsistent with the WTO obligations and distorting the global sugar market Brazil, Australia and Guatemala had knocked the door of World Trade Organization. Following which on August 15, WTO sets up adjudicatory panel over the issue.
The Indian government had introduced various measures, including sugar export subsidy as the sugar sector is suffering from various hurdles from the last two to three years. Sugar surplus in the country causing harm to the industry, so the shipments will help to reduce the sugar glut in India.
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