Record 10 lakh tonnes refined sugar exports likely this year

As India has allowed export of 60 lakh tonnes of sugar, for the first time ever, the country is likely to export a record 10 lakh tonnes of refined sugar. The industry and the trade are also confident about exporting 60 lakh tonnes of sugar by March and have demanded a second tranche of 30 lakh tonnes of sugar export quota.

India announced its 2022-23 sugar export quota on Saturday. Traditionally, India has been known to export lower grade white sugar and raw sugar. However, this year, the premium quality refined sugar exports are expected to jump.

"So far India has signed export contracts for 25 lakh tonnes of sugar. This year, the export of refined sugar is expected to be around 10 lakh tonnes," said Aditya Jhunjhunwala, president, Indian Sugar Mills Association (ISMA).


Refined sugar is the purest form of sugar used in India for specialty use like by pharmaceutical companies.

Maharashtra-based sugar broker Abhijit Gorapade said, "Many Indian mills have signed forward contracts for refined sugar exports thanks to an excellent premium they could get in August/September."

Sugar prices in the EU hit record highs in October on a shortage of gas, used as a source of energy in sugar production process. According to the food ministry data released this week, in sugar season 2021-22, India exported 110 lakh tonnes of sugar and became the second largest exporter of sugar in the world, earning about ₹40,000 crore worth of foreign exchange.

Sugar mills have been given the option to either surrender the quota partially or fully within 60 days of the date of issue of order or swap the export quota with domestic quota within 60 days.

The industry thinks that the option of swapping export quota with other sugar mills will help in faster liquidation of the surplus sugar stocks. Sonjoy Mohaty, director general, ISMA said, "The fact that the government has allowed sugar mills to exchange their export quota with domestic quota of any other sugar mill within 60 days from the date of issuance of the order will ensure liquidation of the surplus stock."