Firmed-up global prices have brightened the prospects of sugar exports from India for the 2021-22 marketing year starting October, even without the government subsidy, rating agency ICRA said on Thursday.
For the last two years, sugar exports have been undertaken with a Government subsidy for a mandated quantity alone.
About 6 million tonne quota was fixed for the 2020-21 marketing year (September-October) and mills have exported more than 90 per cent of it so far.
Mills have also exported some quantities of sugar this year under the open general license (OGL) category without availing the government subsidy in view of rising global rates.
“Sugar export prospects appear encouraging for the next sugar season (SY-2022) in light of the recent surge in international raw sugar prices to around USD 430 per tonne in August, being the highest levels in the past four years,” ICRA said in a statement.