Sugar export to Sri Lanka, Afghanistan amid dip in domestic production

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.



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