RATING agency ICRA recently said it will be challenging to achieve six million tonne of sugar exports in 2019-20 marketing year starting October. The Government announced a Rs 6,268-crore sugar export subsidy scheme on August 28, 2019, which is expected to help the country achieve 6 million tonne of sugar exports.
“ICRA believes achieving this volume of exports will be challenging, given the subdued global sugar prices, but even a part achievement of this target is likely to relieve some pressure from the domestic stocks, support domestic sugar prices and facilitate timely cane payments to farmers,” the agency said in a statement.
India is facing a glut situation in sugar owing to record production during the current 2018-19 and the previous year.
In the current year, sugar output is estimated at around 33 million tonne as against the 32.3 million tonne in 2017-18. The annual domestic consumption is estimated at 26 million tonne. Industry estimates the opening stock of sugar as
on October 1, 2019 at 14.2 million tonne.