India likely to miss sugar export target this season
The government has offered flurry of incentives this year to boost exports amid sugar glut which included transport subsidies.
“Another one lakh tonne can be shipped out this season making it 70% of the total target set by the government. Higher production cost and weak global prices restricted the exports. Even incentives offered by government could not help match the global prices,” said an industry expert, on condition of anonymity.
The government has offered flurry of incentives this year to boost exports amid sugar glut which included transport subsidies of between ₹1,000 a tonne to ₹3,000 a tonne to sugar mills, depending on the distance to ports. The industry aims to export 7 million tonnes of sugar in the coming season amid possibility of shortage of global supply.
“In the current season, there is net global surplus of 2 million tonnes. So, the prices are weak and we are not able to export the targeted 5 million tonnes. But in the next season, there is likely to be a gap of 4 million tonnes between demand and supply making exports lucrative,” said Abinash Verma, director general of ISMA.