India Sees Boost in Sugar Export from Rupee Fall

Among st various agricultural products, sugar occupies an important place. Every year, 1000 of tonnes of sugar are being produced and exported to many countries in the world. As far as sugar production is concerned, India holds the second position in the world. It stands second to Brazil and is above China, Mexico and other developed countries. This year, there will be huge sugar exports from India since the value of rupee has fallen down; thus, it encourages importers from Asia and the Middle East.

If reports are to be believed, this year the sugar export may surpass 1 million tonnes. According to the National Federation of Cooperative Sugar Factories Ltd, it may total around 300,000 tonnes from the local crop, which is obviously an unbelievable achievement. The fall of rupee up to 15 per cent this year proves to be a boon for sugar exporters from India, and this export is not only limited to sugar, but also other top agricultural products, such as cotton, wheat, rice, maize and soyabean meals.

The global experts are of the view that the rise of Indian exports will add to a global surplus. The International Sugar Organization said earlier this year that the worldwide supplies of sugar would certainly exceed the demand by 4.5 million tons. In India, the fall of rupee against dollar will help increase the upsurge in exports. After real, the currency of Brazil, rupee is the worst performer amongst 24 leading rising economies.
The expected sugar exports from India will be around 500,000 to whopping 1.5 million tonnes in the season of 2013 – 2014 due to the fall of rupee and 4th year of home or domestic surpluses. Sugar exporter and supplier K. S. Commodities is a leader in India for consecutive years. K. S. Commodities is a government of India recognized trading house.

Sugar Prices in India:
There is not great fluctuation in the prices of sugar in India. The food minister of India, K. V. Thomas, said that the domestic market has seen the prices of sugar in India are quite stable. The government decontrolled this particular sector by removing the tax or levy obligation on numerous sugar mills in the country. These measures sought to improve efficiency, promote development and augment competitiveness of the sugar sector. All stakeholders such as the farmers, the consumers and the sugar industry are going to get benefits from the partial decontrol.
Post is written By Akhilesh Singh