Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,075.9093.1
Stock Analysis, IPO, Mutual Funds, Bonds & More

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.

, ET Bureau|
Aug 07, 2019, 08.23 AM IST
0Comments
BCCL
Untitled design - 2019-08-07T081942.200
New Delhi: India is likely to miss the target of exporting 5 million tonnes of sugar, which was expected to reduce the glut in the market, as it has shipped out only 3.4 million tonnes with barely two months left in the current season that ends on September 30.

“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.
0Comments

Also Read

Sugar export from India challenging: ICRA

WTO to rule on India sugar export subsidies

India likely to miss sugar export target this season

India starts talk with UK, EU on concessional sugar exports post Brexit

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service