Indian Sugar mills have contracted for export of 2.5 lakh tonnes of white and raw Sugar for delivery between November and January. Driven by fiscal incentives from the central government and lack of storage space for excess Sugar, even Sugar mills from Uttar Pradesh, the top Sugar producer, are likely to export Sugar in a big way.
Millers have signed contracted for export till January with ex-mill rate of Rs 18.50/kg to Rs 19/kg and, including assistance from central government, mills are getting about Rs 31/kg for exported Sugar.
While most of the contracts have been done for white Sugar, raw Sugar has also been contacted. The FOB price offered for white Sugar is $310 per tonne to $330 per tonne, while the offer for white is $290 per tonne.
Sugar mills will get subsidy up to Rs 11/kg of Sugar exported, including production assistance of Rs 1,388/tonnes for growers and transport subsidy of up to Rs 3,000/ tonnes for Sugar exports.
India has produced 322.5 lakh tonnes of Sugar in 2017-18, and private industry body Indian Sugar Mills Association (ISMA) has estimated a production of 355 lakh tonnes in 2018-19. The country has a carry forward stock of 100 lakh tonnes in 2018-19.