Sugar Exports to Sri Lanka & Afghanistan Amid Domestic Production Dip
Despite concerns over declining sugar production and potential price hikes, India has exported a major share of its sugar to Sri Lanka (41%) and Afghanistan (22%), out of 81,307 metric tonnes exported as of March 11, according to the All India Sugar Trade Association (AISTA). Another 70,000 MT is awaiting shipment.
Why Neighboring Countries Prefer Indian Sugar
Lower freight costs
Faster delivery
Higher sucrose content
Concerns Over Falling Sugar Production
The National Federation of Cooperative Sugar Factories (NFCSF) estimates 259 LMT of sugar production this year, a 19% drop from last year’s 320 LMT.
The government's export decision was based on an overestimated production figure of 333 LMT, provided in December 2024 by certain industry groups.
As a result, 20 LMT of sugar was approved for export in two phases starting January 2025.
Impact of Crop Diseases & Weather Issues
Uttar Pradesh: Sugarcane affected by Red Rot & Top Shoot Borer pests, especially in the Co-0238 variety, which covers most of the state.
Maharashtra & Karnataka: Premature flowering of sugarcane led to stunted growth, reducing sugar yield.
Experts had warned of these problems before harvest, but production figures remained inflated.
???? Bottom Line: Policymakers are now worried that sugar exports—based on unclear production data—may lead to higher domestic prices in the coming months
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