- Sugar stocks seen at 8.7 mln T against 10.7 mln T a year ago
- Exports jump 18% to a record 7 million tonnes in 2020/21
- Sugar production in 2021/22 stable at 31 mln T
MUMBAI, July 14 (Reuters) – India’s sugar stocks have been depleted by 19% and the country could start marketing year 2021/22 with the lowest stocks in four years after mills exported a record amount in the current year, a leading trade body said Wednesday.
Lower inventories could support local prices and reduce exports in the next marketing year for the world’s second-largest sugar producer, in turn supporting world prices. ,
India could start marketing year 2021/22 on October 1 with a carryover stock of 8.7 million tonnes, up from 10.7 million tonnes a year ago, the Indian Sugar Mills Association said ( ISMA) in a press release.
The country could produce 31 million tonnes of sugar in 2021/22 against 30.9 million tonnes for the current campaign, the trade body said.
The area under sugarcane cultivation has increased by around 3% to 5.46 million hectares and the weather is also favorable, but the additional supply of sugar cane is likely to be diverted for the production of ethanol, he said.
“With a higher ethanol production capacity and a continued surplus of sugarcane next year … around 3.4 million tonnes of sugar will be diverted to ethanol next season,” he said. .
India plans to achieve 20% ethanol blending with gasoline by 2025 to reduce its dependence on expensive petroleum imports and reduce excess sugar production. Read more
The South Asian country is expected to export a record 7 million tonnes of sugar this season, almost 18% more than a year ago, he said.
In December, India approved a subsidy to encourage cash-strapped factories to export 6 million tonnes of sugar in MY 2020/21 ending September 30.
A few factories exported sugar without a subsidy because they needed funds to pay farmers, industry officials said.
“Exports have helped reduce inventories. In the next season, factories will not be under pressure to export a large quantity,” said a Mumbai-based dealer with a global trading company.
Reporting by Rajendra Jadhav; Editing by Alison Williams
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