Sugar export to Sri Lanka, Afghanistan amid dip in domestic production
India has exported a significant portion of its sugar to Sri Lanka (41%) and Afghanistan (22%) despite concerns about reduced domestic production. Experts warn that the export policy was based on inflated production estimates, with the National Federation of Cooperative Sugar Factories (NFCSF) estimating a 19% drop in sugar production. Pest infestations and adverse weather conditions in major producing states like Uttar Pradesh, Maharashtra, and Karnataka contributed to the decline. This raises concerns about potential higher sugar prices for domestic consumers.
NEW DELHI: India has so far exported its major share of sugar to Sri Lanka and Afghanistan despite growing concerns over the possibility of reduced domestic production leading to higher sugar prices in domestic consumers in coming months.
According to the All India Sugar Trade Association (AISTA), as of March 11, India has exported approximately 41% of its sugar to Sri Lanka and over 22% to Afghanistan, out of 81,307 metric tonnes of white, raw, and refined sugar. An additional 70,000 metric tonnes of sugar are waiting to be loaded for export.
“Neighbouring countries prefer India’s sugar due to lower freight costs, immediate delivery, and higher sucrose content,” stated Praful Vithlani, Chairman of AISTA.
Meanwhile, the export of sugar amid a dip in overall sugar production has raised the alarm among policymakers. According to experts, the Government decision was based on an ‘inflated’ figure of sugar production.
The National Federation of Cooperative Sugar Factories Limited (NFCSF), the largest federation of sugar mills in the country, estimated that around 19% of sugar was produced less than last year. Currently, NFCSF estimates 259 LMT of sugar production, as against 320 LMT of total sugar production last year.
The NFCSF said in its statement that the government had made its export policy based on ‘unclear’ estimated production data of total sugar in India.
According to it, a section of the sugar industry lobby presented a ‘disputable’ figure to the Central Government in December 2024, estimating that the total production of sugar would be 333 LMT, which is slightly higher than the previous year. Based on this ‘figure,’ the government allowed the export of 20 LMT of sugar in two phases in January.
“The export decision helped in improving the sugar price realizations in the international market,” said Prakash Naiknaware, Managing Director, NFCSF. “But, even before the start of the season, all major international research agencies had expressed that the unhealthy status of standing sugarcane in the three major states of Uttar Pradesh, Maharashtra and Karnataka, which produce 80 per cent of the country’s sugar, could result in declined sugar production in India,” he said.
Sugarcane crops in Uttar Pradesh were heavily infested of `Red Rot` and `Top Shoot Borer` pests on the sugarcane variety Co -0238, which covers the majority of the sugarcane area in Uttar Pradesh. Further, at the same time, the premature massive flowering of the standing sugarcane in Maharashtra and Karnataka, resulting in stunted growth and adverse effects on sugar yield.
“Diseases infestations and weather vagaries issues were clearly visible before the harvest of crops although that inflated figure of sugar productions were given to the government,” said a senior official.
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Source : The New Indian Express
