Reuters NEW DELHI
THE country is expected to export a record 4.2 million tonnes of
sugar in the crop year to September, exceeding earlier estimates of
3.5 million tonnes, a top trade official said on Wednesday.
With the surge in exports, which have never topped 2 million tonnes
in a year, India would sell more sugar abroad than Australia, Shanti
Lal Jain, director general of the Indian Sugar Mills Association
(ISMA), said, adding "With India's emergence, the whole sugar
exporting community feels threatened," he said.
ISMA, the apex body of leading private sugar mills, had earlier
estimated that exports in the current crop year would double to about
3.5 million tonnes.
Analysts said overseas sales accelerated in the past two to three
months, the peak of the sugarcane crushing season, and were now
tapering off. Out of the projected exports of 4.2 million tonnes, 3.6
million tonnes have already been exported, Mr Jain said, adding that
raws accounted for 2.3 million tonnes. He said India's efforts to tap
raw sugar export markets had helped overall sales surge.
"The secret of our success is that we are giving the best quality
of raw sugar and making the best out of our strategic location, which
gives us freight advantage," he said.
India, the world's second-biggest sugar producer, entered the raw
sugar export market in 2007 by selling to Dubai's Al Khaleej, the
world's largest refinery, which has now switched to India from top
producer Brazil.
A ban on overseas sales from July 2006 to January last year capped
exports at 1.7 million tonnes in the previous crop year. Record output
of 28.4 million tonnes added to the woes of mills and prices crashed.
Swamped with massive stocks, mills suffered losses and the government
stepped in with a slew of incentives, including a freight subsidy to
boost exports.
Freight incentives evoked sharp criticism from Brazil, Thailand and
Australia, which accused the South Asian nation of becoming the
international rogue of the sugar trade. "Our rising exports are looked
at negatively. What we got was WTO-consistent subsidy and we are very
transparent about it," Mr Jain said.
He said the country's sugar output was expected at 26.5 million
tonnes in this crop year to September. Production was expected to drop
to 21-22 million tonnes next crop year, he said, echoing trade views
that India might have to import sugar in 2009-10.
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