India to export 4 million tonnes of sugar, says Marex Spectron

Pune: India to produce 27 million tonnes of sugar and export 4 million tonnes, says a survey carried out by Marex Spectron, a London-based commodities broker. Indian government has allowed export of 6 million tonnes of sugar.

The survey tried to answer three burning questions in front of the global sugar industry, which include

the anticipated Indian sugar production during 2019/ 20, the anticipated exports from country and anticipated sugar production of Thailand.

Robin Shaw, sugar analyst, Marex Spectron said, “Our poll shows there is a consensus that India will export a large tonnage -around 4 million tons – despite widely varying estimates of Indian production.”

Marex Spectron Sugar team polls the market a few times a year and includes the big hedge funds, trade houses and consumers. In total there are 27 participants.

There had been high level of uncertainty about India’s sugar production due to weather induced damages to the sugarcane crop and policies of the federal government to promote ethanol production over sugar production.

According to the survey, India expected produce not less than 26 million tonnes and not more than 30 million tonnes of sugar. The average anticipated sugar production will be 27.2 million tonnes.

“As for Thailand there is clear consensus that production will fall dramatically, from last year’s 14.5 tonnes to just over 12 tonnes. That fall is of course mainly due to insufficient rainfall; even the switching to cassava which has been talked about seems to be weather-related, in the sense that in areas with sandy soil, which do not retain water, cassava needs less water than cane,” said Shaw.

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