The Indian sugar industry is pushing for expanded global market access while the government contemplates resuming sugar exports, according to recent developments.

Industry Calls for Improved Market Access

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has appealed to the government to secure better market access for Indian sugar in restricted economies, particularly the United States and European Union. Executive Committee Member Madhav Shriram highlighted significant challenges:

• Major sugar-consuming nations impose quantitative quotas
• These quotas limit Indian exporters' market share
• Free Trade Agreements with several countries treat sugar as a sensitive product

The industry body is collaborating with the government to explore more effective ways of accessing these restricted markets.

Government Considers Resuming Sugar Exports

Amid rising domestic stocks, the Indian government is reportedly considering allowing sugar exports. This development comes in light of the following factors:

Recent Export Performance

India's recent sugar export performance has been as follows:

This data suggests that India exported less than its allocated quota in the previous marketing year.

The potential resumption of sugar exports and the industry's push for better market access could significantly impact India's position in the global sugar market. As the situation develops, both domestic sugar producers and international buyers will be closely watching the government's decisions on export policies and market access negotiations.

India's sugar industry is facing challenges in the global market as export projections fall short of expectations. The latest data reveals a significant shift in the country's sugar export landscape, influenced by international market dynamics and domestic price trends.

Export Projections and Quota Shortfall

India's sugar exports for the current season are expected to reach approximately 775,000 metric tons, falling short of the 1 million-ton export quota established in January. This shortfall highlights the complex interplay of global supply and demand in the sugar market.

Factors Influencing Export Performance

Several factors have contributed to the reduced export volume:

1. Brazilian Competition: Increased sugar supplies from Brazil have intensified competition in the global market. Brazilian sugar is currently trading at more than $25 cheaper than Indian shipments, making it a more attractive option for international buyers.

2. Declining Global Prices: The global sugar market has experienced a downturn in prices, affecting the competitiveness of Indian exports.

3. Domestic Price Dynamics: Rising Indian sugar prices have exceeded global benchmarks, prompting mills to focus more on domestic sales rather than exports.

Current Export Status

Despite the challenges, Indian sugar mills have made significant progress in their export efforts:

Key Export Destinations

Indian sugar continues to find its way to various international markets, including:

• Afghanistan
• Bangladesh
• Indonesia
• Sri Lanka
• United Arab Emirates

Future Outlook

As the current export season draws to a close, the industry is looking ahead to potential strategies for managing the remaining quota:

• Mills may seek government approval to export the unused portion of the quota (over 200,000 tons) in the new season starting October 1.
• This approach could help balance domestic supply and maintain India's presence in the global sugar market.

The situation underscores the delicate balance Indian sugar producers must maintain between domestic demand, international competitiveness, and government policies. As global market conditions continue to evolve, the industry will need to adapt its strategies to navigate the challenges and opportunities in the international sugar trade.