The Department of Food and Public Distribution (DFPD) on Friday reviewed the export performance of sugar mills during the sugar season 2019-2020 and revised their Maximum Admissible Export Quantity (MAEQ). The quota was reallocated among 529 sugar mills along with a reserved quantity of 25000 MT.
In conversation with ChiniMandi News, Mr. Adhir Jha, – Managing Director & CEO, Indian Sugar Exim Corporation Limited (ISEC) shared his views on the movement. He said, “Some export will take place but the delay will have its impact. With the depreciation of the Real competition from Brazil will be intense. Besides, execution could be a challenge too. However, we expect to get close to the target of 60 lakh tonnes.”
The nationwide lockdown due to coronavirus pandemic has affected the sugar industry by hitting domestic sugar sales, sugar exports and financial strains to sugar millers, industry experts are optimistic that with the ease of lockdown norms, movement of goods have relatively increased and sugar has been left no behind. Demand has definitely taken a rise, however the surge in sudden demand that has been witnessed has been picking principally because of sentimental stocking by wholesalers and traders due to the probability of increase in Minimum Selling Price of sugar. As of now no spectacular buying has been witnessed from bulk buyers, institutional buyers. Though the summer demand has been killed due to the coronavirus pandemic, demand is yet likely to pick up pace since the country has reached the scenario of unlocking. Once hotels, restaurants, theaters, malls etc. open, the industry shall witness the actual demand coming in.
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