Sugar to have supply surplus in new season: World market slips from decade peak

- In the new season of sugar starting from October in the country, the production is likely to be 3.5 million tonnes.

The equation in the sugar market and industry sector in the country has seen a rapid change recently. Before this, after celebrating various festivals for the past two years due to the corona period and lockdown, now this year people have been seen celebrating various festivals with twice as much enthusiasm, forgetting about corona and lockdown. Rakshabandhan, Janmashtami and Ganesh festival have seen such enthusiasm among people recently and now the festivals of Navratri, Dussehra and Diwali are also approaching. Market sources said that seasonal demand and inquiries have increased in the country's sugar market in such an environment. During the corona period and the lockdown, the demand of bulk consumers in the sugar market was hit, besides the seasonal demand of festivals during that period was also slower than expected. During that period hotels, restaurants, public functions Vs. The demand in the sugar market from However, the situation has changed now. Now there have been indications that apart from the retail demand in the sugar market, the demand of the bulk users has also increased. However now Navratri, Dussehra, Diwali Vs. The currency of sweet during festivals has been seen decreasing every year. And instead of that, given that the currency of dried fruit, chocolate has increased, the market players are keeping an eye on how much the festival demand fluctuates in the sugar market.

Meanwhile, the sugar export sector has also seen a rapid reversal of trends. Global markets have been turning sharply this year in the wake of the Russia-Ukraine war. India's demand for sugar, wheat and rice has increased in the world market due to short supply in the world market, so the Indian government has recently had to make efforts to reduce the export of these goods in order not to create a shortage at home! As the new season of sugar in the country is about to start soon, market players are also watching whether the government decides on a new export policy in the new season or not. Meanwhile, according to the sources of Food and Agriculture Organization FAO in the world market, the total global production of sugar in the sugar season of 2021-22 is around 1745 to 1750 million tonnes. About 50 to 55 lakh tonnes more is recorded. Globally, the production of sugar in 2021-22 has increased in India, Thailand and Europe, while the production in Brazil and China has decreased, these sources said. In 2021-22, the global trade of sugar has increased to about 5.9 million tonnes. In this period, the export of sugar from India and Thailand has increased in the world market, whereas such export from Brazil has remained low. The price of white sugar in the world market has been seen to come down after reaching a 10-year high in the London market recently. The price of such sugar has recently risen to a high of $620 to $621 per tonne, breaking a ten-year record. Sugar exports from India have recently declined in the world market. Sugar production in Brazil increased by 5 to 6 percent in August. The new sugar season in India is scheduled to start from October. At the time of writing, market eyes are on how the government gives concessions for sugar exports in the new season. According to an estimate, the market was discussing the possibility that the Indian government would allow the export of around 70 to 80 lakh tonnes of sugar in the new season. However, market experts were also showing the possibility that the government would give such export concessions in two phases instead of giving such export concessions all at once. At the time of this writing, when the calculation was being discussed that 40 to 50 lakh tonnes of such export concession would be given at the first stage, the market's eyes were on Delhi. However, even before such export concession is given, some of the country's sugar exporters have already started deals for sugar export, it has been heard in the market. In the first stage, the market has heard that such export deals of 3 to 4 lakh tons have been done. The production of sugar in India in the new season is likely to increase to about 350 lakh tonnes, while domestic consumption is 275 lakh tonnes, the quantity of surplus sugar for export is estimated to be sufficient in the country. The beginning of the new season is also to be done with the old Sillak stock.