Indian sugar mills await global prices to enter into export deals

Indian sugar mills are awaiting for global sugar prices to increase to enter into export deals, says Indian Sugar Mills Association (ISMA). It highlighted that due to the decline in global prices of raw sugar, not many export contracts have happened. The industry body said that so far, they only have 38-40 lakh tonne of export contracts.

“Since almost nine months are left for the current season, mills are still waiting for the opportune time to enter into further export contracts. In the domestic market, mills sold 47.50 lakh tonne of sugar during October-November, against the government fixed sale quota of 46.50 lakh tonne for the same period.” ISMA highlighted that total sugar production reached 115.55 lakh tonne during the two months under review, as against 110.74 lakh tonne in the year-ago period.

Meanwhile, India has appealed against a WTO ruling. It found that India’s domestic support measures for sugar and sugarcane are inconsistent with global trade norms. India said the WTO’s dispute panel ruling has made certain erroneous findings about domestic schemes to support sugarcane producers and exports, and the findings of the panel are completely unacceptable to it.

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

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The global trade body ruled in favor of Australia, Brazil and Guatemala. It said India’s support measures are inconsistent with WTO trade rules. An official described the dispute panel’s findings as “unreasonable”. “The panel’s findings on alleged export subsidies undermine logic and rationale. India has appealed in the appellate body of the WTO against the panel’s ruling.”