Sugar exports to rise 80% despite 9% output drop
Sugar exports from India, the world's second-largest producer, are likely to see an over 80 per cent jump to 20 lakh tonnes in 2015-16 marketing year, even as the production is set to drop by 9 per cent. Sugar mills have received contracts to export 14 lakh tonnes (LT) of the sweetener since October and are likely to ship out another 5-6 LT by the end of the season in September. Mills had exported 11 LT sugar in the entire 2014-15 marketing year (October-September). In September, the Centre had directed cash-starved sugar mills to compulsorily export 40 lakh tonnes in 2015-16 in order to clear huge arrears to the farmers.
Meanwhile, sugar production in India, second to the Brazil's, fell for the first time this year with output dipping to 221.30 lakh tonnes till March 15 as against 221.57 lakh tonnes in the year-ago period. Indian Sugar Mills Association (ISMA) expects country's sugar output to fall by around 9 per cent in 2015-16 as against 283 lakh tonnes in the 2014-15.