The sugar industry has exported 5.11 million tons of sweetener so far in the ongoing 2020-21 marketing year ending September, with many shipments to Indonesia, AISTA said on Thursday.
About 2,02,521 tons of sugar is under load. An additional 6,78,237 tonnes of sugar is in the process of being delivered to port-based cleaners, it said.
Mills has a contract to export a total of six million tons of sugar allocated to the food department in January this year, the All India Sugar Trade Association (AISTA) said in a statement. Eight tons of sugar were contracted under the OGL route (open source license) without funding funding.
The sugar marketing year runs from October to September. According to AISTA, mills produced a total of 5.11 million tons of sugar from January 1 to August 5, 2021.
Of the total exports made so far, the highest exports were made to Indonesia at 1.69 million tons so far this year, followed by Afghanistan at 6,23,967 tons and the UAE at 4,60,816 tons and Sri Lanka at 3 tons , 78,280.
“We are proud to say that the amount of sugar exported / under the export process is more than USD 2.5 billion or about Rs crores. The hands of a sugar mill to pay the price of sugarcane for farmers,” AISTA noted.
The industrial sector went on to say that India has been able to secure an estimated 6 million tonnes of sugar contracts without exporting them to Iran, which has the potential to buy 1.2 million tons.
“With the political situation in the world market changing, it would be wise to find a way to export sugar to Iran. This will help India to grow its market and make money for Indian sugar, “he added.
With the current marketing year coming to an end, AISTA said there was an urgent need for a timely announcement of the sugar export policy next year. The global market rose from 17.28 cents per kilogram on July 10 to 19.59 cents per pound on August 11, 2021, and a 13.4 per cent increase due to weather problems in Brazil, he added.
AISTA also called on the government to remove pending subsidy claims and address container shortages and rising sea levels. Many expenditure subsidy claims over the past year have not been resolved.
These claims can be resolved and paid quickly because the mills will need money before the start of the season, it said.
Significant increases in sea freight and the unavailability of containers have eroded exports and prove to be a major factor in export operations, he added.