India to resume exporting raw sugar to China from early 2019

Nov 10, 2018 08:20 IST
India to resume exporting raw sugar to China from early 2019

India plans to resume exporting raw sugar to China beginning 2019, almost after a decade. The move is a part of a larger goal of shifting focus to the overseas markets to shed surplus stocks that have muted prices and created financial distress in the Indian sugar mills.

The Union Ministry of Commerce and Industry said in a statement that Indian Sugar Mills Association and COFCO, a public sector company of China have entered into a contract for exporting 15 thousand tonnes of raw sugar.

Key Highlights

India plans to export two million tonnes of raw sugar to China beginning next year.

Raw sugar is the second product after non-basmati rice that China will import from India.

The move is expected to reduce the 60 billion trade deficit that China has with India.

India's export to China in 2017-18 amounted to 33 billion US dollars while imports stood at 76.2 billion dollars.

Sugar Production in India

India is the largest producer of sugar in the world. India produces sugar of all three grades- raw, refined and white.

Indian sugar is also of a high quality and is Dextran free because of the minimum time taken from cut to crush.

India is currently in a position to become a regular and dependable exporter of high-quality sugar in significant volumes to China.


India produced a record 32.5 million tonnes of sugar in the 2017-18 marketing year and the output is estimated to be around the same level or slightly lower in the current marketing year.

The annual domestic demand is around 26 million tonnes. The country also has an opening stock of 10 million tonnes at the start of the current marketing year that started last month.

To liquidate surplus stock, the Indian government has asked sugar mills to mandatory export 5 million tonnes in 2018-19 and has even announced some financial assistance to facilitate outward shipments.

The government is also negotiating with many countries, including China and Indonesia, to boost exports.

On the other hand, China's sugar production is around 10.5 million tonnes as against its annual demand of 15 million tonnes. The nation imports sugar to meet its domestic demand as well as to build buffer stocks.

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