Global sugar prices had touched 3-year highs in the month of January for white sugar. However, that has come down now. Thailand production is also poised to rebound next season and there are reports of distressed sales in Indian markets.

Abinash Verma, Director General of ISMA said that lower than usual production from Thailand is beneficial for India.

“Thailand’s production will be coming into the market, but their production is going to be much lower than what they usually do. Two years back they produced about 14 million tonnes, last year it dropped to about 8-8.5 million tonnes, and this year it is going to drop further down. There are rumors that they might do just about 7 million tonnes. So, 7 million tonnes less production from Thailand which is the second-largest exporter of sugar gives an opportunity to India to export to the traditional Thai market like Indonesia, Malaysia,” he said in an interview to CNBC-TV18.

He also said that global sugar prices are at their peak and that they are trying to export as much as possible. However, he said they are facing container shortages for the export of white sugar.

“We are facing container shortages as far as white sugar exports are concerned. As far as raw sugar export is concerned, we do not use containers; these are bulk. So, we did have a meeting with the ministry of commerce and the ministry of food, a joint meeting, and we are trying to find ways of how we can send white sugar in bulk instead of waiting for the containers. There is a problem, but I personally presume that as per our target, what we want to export, we should be doing it because most of our exports will be in raw sugar,” he said.

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(Edited by : Anshul)