Sugar firms contract over 83% of 6 million tonnes export target

Indian sugar companies have contracted more than 83% of the export target of 6 million tonnes for the ongoing 2020-21 sugar season, said the Union food ministry.

The surge in exports is mainly due to firm global prices and export subsidy, which has made exports lucrative.

This gain in export momentum will also help millers settle farmers’ cane arrears, which crossed Rs 23,000 crore till February, said officials.

Domestic sales are also looking steady despite increasing cases of Covid-19 and lockdown in some parts of the country. “So far there is no impact on demand for the sweetener. A seven to 10-day-long lockdown can hardly impact the industry. The demand this year in March was almost 20% more than last year in March. We have not seen any drop in consumption in April yet,” said Abinash Verma, director general, Indian Sugar Mills Association.

He said the lower production in top sugar producing countries, Brazil and Thailand, is helping the cause of India.