India exports 500,000 tonnes of sugar so far this year

India has exported about 500,000 tonnes of sugar so far in the current marketing year, which started from October 2011, mainly to Africa, Sri Lanka and Australia, a top industry official said today.

“Out of the first tranche of one million tonne that the Government allowed, physical shipment of 500,000 tonnes has taken place as of now,” Indian Sugar Mills Association (ISMA) Director-General, Mr. Abinash Verma, told PTI.

The maximum quantity has been exported to Africa, Sri Lanka and Australia, he added.

The Government has permitted two metric tonnes of sugar exports in two equal tranches to offload it in the global market and ensure timely payments to domestic cane growers.
Mr. Verma said exports are viable at present and “we are getting a premium of Rs.3 on one kilogram of sugar’’.

Sugar production in India, the world’s second biggest producer but the largest consumer, is estimated to outstrip the annual demand of 22 metric tonnes this year.

The Government has pegged sugar output at 24.5 metric tonnes for tge 2011-12 marketing year, while the industry body ISMA expects it to be 26 metric tonnes.

In 2010-11 marketing year (October-September), the country had exported 2.6 metric tonnes. (Source: The Hindu Business Line)