India Waits For Global Sugar Prices To Increase To Strike Export Deals, says ISMA

ISMA, the industry body, said on Monday that Indian sugar mills are still waiting for global sugar prices to rise before entering into new export agreements.

Because of the drop in global raw sugar prices, not many export contracts have been signed in the last month or so, in addition to the 38-40 lakh tonne of export contracts that have previously been signed, the company said in a statement. 

"With nearly nine months left in the current season, mills are still waiting for the right time to enter into additional export contracts," the Indian Sugar Mills Association (ISMA) added. 

During the October-November period of the current 2021-22 season, sugar mills exported over 6.5 lakh tonnes of sugar, up from 3 lakh tonnes the previous year. 

ISMA reported that mills sold 47.50 lakh tonnes of sugar in the domestic market during October-November, compared to the government's fixed sale quota of 46.50 lakh tonnes for the same period. 

During the two months under review, total sugar output reached 115.55 lakh tonnes, up from 110.74 lakh tonnes the previous year. 

The rushing operation is underway in sugarcane growing states. 

Sugar Export Subsidies: 

According to an official, India has filed an appeal against a World Trade Organization (WTO) trade dispute settlement panel judgment that the country's domestic support measures for sugar and sugarcane are inconsistent with global trade principles. 

India filed the appeal with the WTO's Appellate Body, which is the final authority on such trade disputes. According to India, the WTO's dispute panel conclusion found several "erroneous" findings concerning domestic initiatives to boost sugarcane growers and exports, and the panel's findings are utterly "unacceptable."  

The panel, in its judgment on December 14, 2021, recommended that India withdraw its claimed prohibited subsidies under the Production Assistance, Buffer Stock, and the Marketing and Transportation Schemes within 120 days from the adoption of this report. 

The official stated that the dispute panel's findings are irrational and not supported by WTO standards and also evaded key issues which it was obliged to determine.