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India’s sugar exports
News: By pivoting to raw sugar exports, India has gone from being a marginal player five years ago to No. 2 in the world currently, behind only Brazil. Specific advantages of Indian raw sugar have helped Indian exports.
Important Data:
Between 2017-18 and 2021-22, sugar exports have soared from $810.9 million to $4.6 billion, and could cross $5.5 billion — or Rs 45,000 crore — in the fiscal year ending March 31.
Raw sugar is rough and brownish in colour, with an ICUMSA value of 600-1,200 or higher. ICUMSA, short for the International Commission for Uniform Methods of Sugar Analysis, is a measure of the purity of sugar based on colour. The lower the value, the more the whiteness.
Refined White sugar - Raw sugar after being processed in refineries for the removal of impurities and de-colourisation.
Till 2017-18, India hardly exported any rawsugar. It mainly shipped plantation white sugar with 100-150 ICUMSA value. This was referred to as low-quality whites or LQW in international markets.
Advantages of Indian Raw Sugar:
India’s crushing season is from October to April, whereas Brazilian mills operate from April to November. Hence, importers are utilising Indian raw sugar during Brazil’s off-season.
India is much closer to its major sugar importers (compared to Brazil) and therefore less freight cost.
Indian sugar is free of dextran. Dextran is a bacterial compound formed when sugarcane stays in the sun for too long after harvesting.
India’s sugar has high percentage of Sucrose content.
What are government policies for Sugar?
Fair and remunerative price (FRP) - The FRP is the minimum price that sugar mills have to pay to sugarcane farmers for the procurement of sugarcane.
Although the Central government decides the FRP the state governments can also set a State Advised price that a sugar mill has to pay to the farmers.
Encouraging Ethanol Production to be used in Ethanol Blending with Petrol (EBP) Programme.
Scheme for Extending Financial Assistance to Sugar Undertakings.
What is end result of Sugar exports?
Out of India’s total 110 lt sugar exports in 2021-22, raws alone accounted for 56.29 lt.
The biggest importers of Indian raw sugar were Indonesia (16.73 lt), Bangladesh (12.10 lt), Saudi Arabia (6.83 lt), Iraq (4.78 lt) and Malaysia (4.15 lt).
From being a marginal exporter until five years ago, India has become the world’s No. 2, with its shipments of 110.58 lt in 2021-22 (according to the International Sugar Organization) next only to Brazil (255.40 lt).
Address : 506, 3rd EYE THREE (III), Opp. Induben Khakhrawala, Girish Cold Drink Cross Road, CG Road, Navrangpura, Ahmedabad, 380009.
Mobile : 8469231587 / 9586028957
Telephone : 079-40098991
E-mail: dics.upsc@gmail.com
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