India: The Global Exporter of Sugar

Key Highlights:

• For the financial year 2023-2024, India produced around 34 million metric tones of sugar.

• Sources for sugar exports indicated that India exported sugar that ranges to nearly 3 million metric tonnes of sugar for the fiscal year 2024.

• Some of the major importers of Indian sugar are Indonesia, Bangladesh, Sudan, United Arab Emirates, Somalia and Djibouti.

• As per India sugar export data, the primary types of sugar exported from India include: White sugar: Crystal sugar, granulated sugar, caster sugar, icing sugar, fondant sugar, Round Jaggary, Jaggary powder, Organic sugar and Sugar cubes.

• Some of the well-liked Sugar HS Codes are 1701, 17011200, 170113, 17011320, 170114, 17011420.

How Import Export Data of India Reflects the Country's Sugar Business?

Export of Sugar is an important segment of India’s trade with other countries. Data analysis of India trade characteristics provide insights into the positional advantage of Indian sugar in the global context. India Import Export Data is presented to shed light on the flow and activity levels of sugar, where India takes the position of the leading exporter nation.

What Factors Make India as the Leading Exporter of Sugar in the World?

Some of the key driving forces which make India realize its dream as the largest exporter of sugar in the year 2024 are as follows. What, therefore, make India's sugar industry so defiant, more so in a year characterized by economic and climate volatility?

1. New Records Unveiled

The quantity of sugar produced in India as per the India trade data has increased in the past few years. Analyzing the current and next year’s production, the country is expected to produce a record 36.5 MMT of sugar in 2024, grossing a considerable number compared to the previous years. This has ensured that Kenyans have a bountiful harvest to feed on and also avocado is produced in excess that can be exported to other countries.

It remains questionable what makes India capable of maintaining such high production rates?

The availability of suitable climatic conditions of the country for growing sugarcane and irrigational facilities developed in major sugarcane belt areas of Uttar Pradesh, Maharashtra and Karnataka facilitates this articulation. Moreover, the large area of production, which is more than 5 million hectares, contributes to the achievement of high output indicators in sugarcane.

2. Export assistance and government incentives

This is one of the main reasons that India has actually seen an increase in the exports of sugar for quite some time now partly due to the active support from the government. Many policies have been launched to help sugar makers; one of them is export incentives aimed at maintaining competitive sugar prices on the global level. The Indian government in 2024 has released ₹1,000 crore (about $120m) in export incentives so as to improve the attractiveness of Indian sugar for buyers internationally.

In addition, government supported ethanol blending has been helpful in addressing surplus availability of sugar in the domestic market. Because some production capacity of sugar is utilized to produce ethanol for bio fuel, it avoids overproduction and provides a stable supply of sugar for export..

3. Competitive Pricing

Indian firms have kept up the competitive edge in international markets persistently across the globe particularly in the South East Asian, African and the Middle Eastern regions. The empirical research revealing the twenty-five percent of sugar exported from India in 2024 ranging from $ 400 to $ 450 per ton is still lower than the exporting countries like Brazil and Thailand. By employing affordable production technologies, India has preserved a competitive pricing advantage of sugar especially in areas of relatively low income.

This pricing strategy has helped Indian sugar be very competitive in Indonesia, Bangladesh and several African countries where price is the only factor that is given topmost consideration.

To Which Countries Is India Exporting Sugar in 2024?

Not only the volume of exported sugar from India is shifting, but its regional markets are also becoming more varied. Which countries would be major importers of Indian sugar in 2024?

1. The Asian region, particularly the Southeast Asian nations – An Emerging Market

By 2018, Indonesia remained one of the biggest buyers of Indian sugar. India planned to provide approximately 3600 thousand MT of Palm Oil to Indonesia in 2024. The Indonesian market is important to India because the country sources most of its sugar requirement from imports due to increased demand.

Another key market is Bangladesh, for which India is foreseen to supply 1.3 million MT in 2024. Closeness of the two countries and affordability is important that is why India is a main supplier to Bangladesh.

2. The Middle East – Constant Demand

Indian sugar’s exportation to the Middle East region is on constant rise as the graph shows. Even the biggest importers are the UAE or Saudi Arabia and Oman: according to some sources it is expected that Saudi Arabia will import 1,5 million tons of sugar from India in 2024 only.

3. Africa – An Emerging Market

The Indian presence in Africa has also grown further in 2024. Countries like Sudanese, Nigerian, international and Somalia are importing more sugars and there is optimism that the Africa region may likely to exceed 1.5 million tons by 2024 end.Increased human and population densities and increased urbanization in these countries have also boosted the consumption of processed foods – the sugar inclusive.

Which Obstacles Could Affect India’s Success in Sugar Export?

However, in the light of the fact that the sector of export of sugar in India is rather well developed, there are several factors which can hamper enhanced success of this sector in the future. The outstanding questions, which may pose a threat to India’s continued dominance in the global economy of sugar, are as follows:

1. Climate Change and Associated Weather Risk

It means that the production of sugar in India is extremely vulnerable to weather circumstances, including the monsoon period. Reduced rainfall frequency and or amount also puts significant pressure on sugarcane production potentiality in the country. Besides, variation in climate also means that the organisation is prone to experiencing events like drought or flood, both of which affect smooth production.

The Indian authorities and sugar producers are trying to develop new more heat tolerant sugar varieties and at the same time the sector remains highly sensitive to climate shifts.

2. Fluctuating Global Prices

The global sugar market has been fluctuating due to many factors such as the production in Brazil and Thailand, the global consumption, and changes in international trade. A sharp drop in the prices of sugar may erode these cost advantages in India and adversely affect producer’s margins.

3. Domestic Demand Pressures

The current population growth in India leads to minimum domestic sugar consumption. Although this is an upward trend, there is the potential to experience competition between serving the domestic markets and meeting export obligations.  Depending on the current trends, if the domestic consumption increases dramatically, then it will become difficult for India to maintain the export interest to the global market.

Who are the Top Sugar Exporters in India?

As of 2024 , the sugar export is increasing rapidly which leads to a number of companies becoming key players in the industry.

1. Balrampur Chini Mills Limited

Location: Uttar Pradesh

Overview: Balrampur Chini Mills Limited is one of India’s largest and well-known players for sugar companies and exporters. Being close to a range of sugar mills and fields located in Uttar Pradesh it operates both the domestic as well as international marketplace. They export most of their sugar to countries such as Indonesia, Bangladesh and some African nations.

Key Highlights:

• It is one of the largest sugar producers in India.

• Integrated business model: The sub sectors are, sugar production, ethanol production and co-generation of power.

• Emphasis on environmental friendly policies and initiatives and attempts to minimise carbon emission.

2. Shree Renuka Sugars

Location: Karnataka and Maharashtra

Overview: Shree Renuka Sugars is an integrated player in terms of production and export of sugar in the Indian market. The firm also has an establishment in Brazil, moreover, the company owns several sugar mills in India. Currently Shree Renuka Sugars is exporting its products to more than fifty countries and has its largest market share in South East Asian countries.

Key Highlights:

• A formidable player in both the Indian and the Brazilian sugar market.

• Leading exporters to markets such as Indonesia, The Middle East and Africa.

• Specialises in the production of value added products that include refined sugar.

3. Triveni Engineering & Industries Limited

Location: Uttar Pradesh

Overview: It is a group company which is having its operation expanded in a various field, though mainly dominating the sugar industry. The firm has a division in sugar manufacture and has raw sugar, refined sugar and Ethanol as its products. Of late, Triveni has always been in the list of top Indian sugar exporters primarily exporting sugar to Southeast Asian countries, Middle Eastern and Africa.

Key Highlights:

• One of the largest integrated producers and marketers of sugar and ethanol in the world.

• Export specialization is on refined and specialty sugars.

• company commitment to sustainability and energy efficiency.
  
  4. Dwarikesh Sugar & Industries Limited

Location: Uttar Pradesh

Overview: Dwarikesh Sugar Industries is focused on the production and export of standard sugar in the market. The firm has several sugar mills and sells most of its products on the international market. Dwarikesh enjoys a favorable reputation for its super-speciality white sugar and highly refined sugar which is particularly consumed in places such as Indonesia and UAE.

Key Highlights:

• Having a large market share for sugar in the global arena.

• Make quality and maximise consistency the goals.

• Export concentration was on the sugar commodity in the raw and processed form.

5. Bajaj Hindusthan Sugar Ltd.

Location: Uttar Pradesh

Overview: Bajaj Hindusthan is a prominent sugar manufacturing company and it is among the oldest Operating Companies in India. It has massive networks of sugar mills and it is among the leading exporters of sugar to several countries including some in the Middle East Asian region. Bajaj Hindusthan has established a good export market with products like refined sugar and other sugar products.

Key Highlights:

• A company distinguished as one of the biggest sugar producers in India.

• It has diversified business segments: power generation, ethanol.

• They have robust export destinations in Saudi Arabia, Indonesia, and Bangladesh and among others.

 
How to Acquire Sugar Export Data?

The most effective means through which one can access the sugar export data is on our database, Exim Trade Data. As of now, it is the most preferred dashboard for Global Import Export Data Provider for more than 200+ countries.

Additionally, our dashboard provides information on:

• Information obtained from India regarding the export of the product

• Go through the active list of producers selling large quantities of sugar in India.

• Top Sugar HS Codes

Conclusion:

India, by far ahead of other countries, leads the export market in 2024, with exports totaling 11.5 million metric tons. The reason behind the increasing investments lies in its prestige production, supporting government policies and high demand in such strategic markets as South-East Asia, Africa and the middle east. However, there are issues along the line hence, the road map for exporting sugar is faced with certain risks which includes; Climate risks, Fluctuations in the prize rate, Increasing domestic demand

However, due to India’s strategic focus on ethanol production, financial backing by the Indian government and competitive market price, India will remain the market leader in the global sugar market in 2024 and beyond. Whether India can sustain this sweet spot as the number one exporter will however, depend on how the country manages these challenges and the dynamics within the sugar sector. India: The Global Sugar Exporter is better equipped to influence the international trade of sugar in the years to come.