ENA Sectors 2025-01-20 14:59:21 <p><span style="font-size:14px"><strong>New Delhi, Jan 20 (KNN)</strong> India is preparing to authorise the export of 1 million metric tonnes of sugar during the current season, according to government and industry sources familiar with the matter, reported Reuters.</span></p> <p><span style="font-size:14px">The decision comes as the world's second-largest sugar producer after Brazil seeks to manage its surplus stock and stabilise domestic prices.</span></p> <p><span style="font-size:14px">The export authorisation arrives at an unusual time, as India's sugar production is projected to fall below domestic consumption for the first time in eight years. </span></p> <p><span style="font-size:14px">Industry estimates suggest production could decline to approximately 27 million tonnes from last year's 32 million tonnes, falling short of the country's annual consumption of 29 million tonnes.</span></p> <p><span style="font-size:14px">The decline in production is largely attributed to lower sugarcane yields in the key producing states of Maharashtra, Karnataka, and Uttar Pradesh, which collectively account for over 80 percent of India's sugar output. This reduction has prompted trade houses to revise their production forecasts downward for the 2024-25 season.</span></p> <p><span style="font-size:14px">Deepak Ballani, director general of the Indian Sugar and Bio-energy Manufacturers Association, expressed optimism about the decision, noting that strong production expectations for the following year make the limited export allowance beneficial for the industry. </span></p> <p><span style="font-size:14px">The move is particularly significant as India had suspended sugar exports in 2023-24.</span></p> <p><span style="font-size:14px">The export permission is expected to provide relief to sugar mills struggling with depressed local prices, which have reached their lowest levels in the past 18 months. <br /> However, market analysts suggest that India's decision to release 1 million tonnes of sugar into the global market could put additional pressure on international sugar prices.</span></p> <p><span style="font-size:14px">India, which typically exports an average of 6.8 million tonnes annually, primarily supplies sugar to Indonesia, Bangladesh, and the UAE. </span></p> <p><span style="font-size:14px">This strategic export decision aims to balance domestic market stability while maintaining India's presence in international sugar trade.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em><br /> </p> 40710 https://knnindia.co.in/news/newsdetails/sectors/india-authorises-1-mt-sugar-exports-amid-production-shortfall 2025-01-20 14:59:21 knnindia.co.in