5 things you didn’t know about sugar export

The sugar industry has grown by leaps and bounds in the last decade in India, from setting up of new sugar mills to demand outstripping supply and prices rising high, the industry has seen many changes. However, there are still several facts about sugar export that you might not know about but should. Here’s a look at 5 of them…

Fact 1: Sugar is the world’s most traded commodity

The sugar import and export market is valued at more than $160 billion worldwide, making it far and away the most traded commodity on Earth. In fact, sugar exports make up one-fifth of all food exports worldwide, making it an important aspect of international trade. It’s also a highly concentrated industry: As much as 90% of sugar production comes from only 12 countries around the world, which account for roughly two-thirds of total sugar exports.

Fact 2: Sugar can be found in over 2500 products

Because of its diversity, bulk sugar can be found in over 2500 products including candies, chewing gum, baked goods and snack foods. Through a process called crystallization, processors dissolve bulk cane or beet sugars into a syrup that they use to fortify food products with sweetness and make beverages thicker. Bulk molasses is also used in specialty animal feeds as an ingredient in binder formulations. Depending on what you’re using it for, molasses can be from very dark to light brown in color—its color is just a consequence of how much it has been refined and processed through charcoal filters. The lighter it is, the less processing it has gone through.

Fact 3: India produces 40% of all sugar produced in the world

India has 40% of the world’s total production. India is known as a single country which creates a huge number of problems to be exported by high quality and affordable prices. Now India has become a leader in the international market to manage their status. So where are the export sugar markets or how do they manage their position? In the last 2 years, there were many hurdles to increase our exports. We also faced many problems because of the varied climatic conditions of different areas. Sugar industries face a lot of challenges because there is risk on crop patterns, tariffs and transportation systems due to changing policies of different countries like the US, EU, China and Brazil. Without considering those challenges Sugar Export Promotion Council managed its activities in such a way that we became a leading nation for exporting sugar.

Fact 4: The global trade market for soft commodities (sugar, coffee, cocoa) is worth US$1 trillion

Online sugar export is an essential part of this industry. What’s more, these commodities are traded globally and being connected to a global network of buyers and sellers can benefit both buyers and sellers in terms of better prices for their goods, which means more money for everyone involved. The world of soft commodities is big business – so big that it could fund a wide range of other industries. For example, in 2013/14 world coffee exports amounted to US$15 billion, while cocoa exports totaled $9 billion. Sugar is also lucrative – globally, it’s worth around $22 billion annually and American companies alone account for over half of US$2 billion in annual exports.

Fact 5: India accounts for 35% of the world exports of Sugar

India is by far, one of the largest exporters of Sugar and accounts for over 35% of all exports. The total amount exported from India in 2016 was around 104 million tonnes. A bulk sugar is exported to neighboring countries like Pakistan, Bangladesh, UAE and Nepal. The Indian state with maximum area under Sugarcane cultivation is Uttar Pradesh followed by Maharashtra and Karnataka. This region accounts for over 75% of total production across India.

Sugar Demand and Consumption All Over The World

Sugar is the most commonly used sweetener in the world. It has been known for centuries and used by civilizations as a preservative and sweetener. Today, sugar is one of the most used food ingredients across the globe. In fact, only water is consumed more than sugar on a global scale.

According to the Food and Agriculture Organization (FAO), approximately 150 million tons of sugar was produced globally in 2020/2021. This number has increased considerably over time mainly due to population growth and increased urbanization.

The world’s largest producers of sugar are Brazil, India, China and Thailand while other major producers include Mexico, Pakistan, Australia, Russia and Ukraine among others.

Sugar Export From India 

Sugar exports from India have reached a record high of 1.5 million tonnes till April 2020.

This includes shipments of around 1.1 million tonnes of raw sugar and 400,000 tonnes of refined sugar.

The country’s sugar exports have shot up by almost 40% this year as compared to the same period last year. The increase in exports has been mainly due to a sharp rise in global prices which has also increased domestic prices.

The prices of cane arable lands across India have gone up by 20-30% in recent times due to shortage of rains and irrigation facilities.

The central government has banned the export of unprocessed sugar, but it hasn’t been able to stop the exports as they are being routed through third countries like Thailand and Vietnam where there is no ban on raw sugar exports.

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