More export opportunities to India at a time when the production is also expected to rise may help to cut India’s trade gap.
As the government data has shown higher sugar production in the country this year, another good news has come from the neighbouring country. Indonesia has decided to ease rules to allow more shipment of Indian sugar. The country’s move is perceived as a measure to boost bilateral trade at a time when Indonesia needs additional supply from India on the back of high household consumption. More export opportunities to India at a time when the production is also expected to rise may help to cut India’s trade gap as well.
The Second Advance Estimates of Production of Foodgrains, Oilseeds and other Commercial Crops for 2019-20, released by the Ministry of Agriculture & Farmers Welfare has shown that the total production of sugarcane in the country during 2019-20 is estimated at 353.85 million tonnes, which is 4.07 million tonnes more than the average sugarcane production of 349.78 million tonnes.
Sugar is sweeter in India
Indian sugar is sweeter than most of the nations due to high sucrose content. Indian sugar has a sucrose content above 99 per cent, compared with a global average of 97 per cent. The sweetness thus derived is due to quick processing of the sugar, unlike that in countries like Thailand and Brazil, where the harvest is late, causing the formation of dextrans. The dextrans are undesirable microorganism contamination mainly formed due to long waiting time in processing.
Meanwhile, the decision has come at a time when Commerce Minister Piyush Goyal has been highlighting the need to boost exports. Earlier this week, Piyush Goyal said that the scale of production will play a very important role in remaining competitive in the global market.