India Poised for Sugar Export Season Driven by Favorable Conditions
India anticipates sufficient sugar production next season for export as optimal weather conditions empower farmers to expand acreage. According to Aswani Srivastava, Joint Secretary of India's Food Ministry, the country anticipates a bountiful sugar cane harvest, ensuring continued participation in the export market.
As the world's second-largest sugar producer, India recently granted permission for mills to export up to 1 million tons in the ongoing season, easing restrictions that had limited overseas sales for over a year. The industry had requested permission to export up to 2 million tons.
Exports from India have significantly influenced the global sugar market. Continued shipments, after meeting domestic food and fuel needs, may exert downward pressure on international prices, which have already declined by approximately 20% over the past 12 months due to improved supplies.
In response to a diminished crop in 2022-23, India placed restrictions on sugar exports. While the government authorized shipments of 6 million tons that year, it did not establish a quota in the previous season to prioritize ethanol production.
The nation intends to raise biofuel blending in gasoline to 20% in the upcoming fiscal year from April, up from the current level of 18%, to reduce its significant oil import expenses and emissions.
As of October 1, the start of the current season, India's sugar stockpiles stood at approximately 8 million tons. Production is projected to reach 27 million tons this year, with 4 million tons diverted for ethanol production, while local consumption is estimated to be 28 million tons.