Categories: Business

Export to offset lower domestic demand for sugar says crisil

Photo: GOOGLE

sugar demand

new Delhi. Sugar consumption is likely to remain stable in the current sugar season (October 2019 – September 2020) despite the constraints posed by the Kovid-19 epidemic. During this period, the increase in Chinese exports is expected to make up for some of the decrease in domestic consumption. This estimate has been given in the report of CRISIL Research. According to the report, industrial demand accounts for 60 percent of the total domestic consumption of sugar. This industrial demand is estimated to be 8-9 per cent lower in the current sugar season as hotels, restaurants and cafes are closed and people are avoiding moving to crowded places. However, the report states that the remaining 40 percent of sugar is consumed domestically. This household consumption will be reduced by only 2-3 per cent as the consumption of biscuits and bakery products has increased during this period due to people staying in their homes for a long time. In addition, packaged sweet products such as chocolate and cookies are likely to be preferred over open sweets in the festive season among consumers for fear of infection.

Crisil said, however, the reduction in total domestic demand would be higher than exports. Sugar exports are expected to grow by more than 30 percent to 5 million tonnes in the 2020 sugar season. Mainly importing from this country, Indonesia, Kenya, Bangladesh, Afghanistan and Iran are also meeting their domestic consumption by importing from India due to low sugar production in Thailand. In the new marketing year 2020-21 starting from October, sugar production is estimated to be 305 lakh tonnes, while in the current sugar season ending in September 2020, it is estimated to be 272 lakh tonnes.

This post was published on August 19, 2020 10:50 pm

Content Team

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