Indian mills have signed sugar export deals for supply of 62 lakh tonnes so far in the current 2021-22 marketing year that started from October 1, trade body AISTA said on Monday. Of the total volume signed for exports, 47.84 lakh tonnes of the sweetener has already been shipped, it added.

About 4.94 lakh tonnes of sugar is under loading/waiting for loading, All India Sugar Trade Association (AISTA) said in a statement.

Mills have contracted to export 62 lakh tonnes of sugar without the government subsidy so far in the 2021-22 marketing year, it added.

The sugar marketing year runs from October to September. Sugar exports this year are being undertaken without the government subsidy.

According to AISTA, the sugar dispatches from sugar mills exclusively for export are placed at 52.78 lakh tonnes.

Out of which, the total sugar exports were at 47.84 lakh tonnes. Of this, 40.07 lakh tonnes of sugar shipment has been exported by mills and merchant exporters directly, while 7.77 lakh tonnes has been delivered to Indian refineries for refining and export, which is considered as deemed export, it said.

Due to the extended crushing season in Maharashtra and Karnataka, AISTA said sugar production estimates have provisionally revised to 335 lakh tonnes for the 2021-22 marketing year.

“The Russia-Ukraine war has created aberrations in the commodities market. The crude oil prices have suddenly jumped to USD 125 per barrel, making the production of ethanol attractive,” it said.

Also, the international price of raw sugar for the May contract was quoted at 19.80 cents per pound on March 4 at 1500 hours on Intercontinental Exchange (ICE), New York.

“The high international sugar price coupled with weak India Rupee has made export of sugar attractive,” AISTA noted.

During the 2020-21 marketing year, the country had exported a record 7.23 million tonnes of sugar. The maximum shipments were undertaken with the help of the government subsidy.