India: Sugar Market 2022

Sugar Market Size in India

The Indian sugar market fell dramatically to $X in 2021, shrinking by -15.2% against the previous year. Overall, consumption, however, showed a relatively flat trend pattern. As a result, consumption attained the peak level of $X. From 2019 to 2021, the growth of the market remained at a lower figure.

Sugar Production in India

In value terms, sugar production declined modestly to $X in 2021 estimated in export price. In general, the total production indicated perceptible growth from 2012 to 2021: its value increased at an average annual rate of +3.8% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production decreased by -11.1% against 2018 indices. The most prominent rate of growth was recorded in 2018 when the production volume increased by 50% against the previous year. As a result, production attained the peak level of $X. From 2019 to 2021, production growth failed to regain momentum.

In 2021, the average yield of sugar in India totaled less than X kg per ha, stabilizing at the previous year. Over the period under review, the yield saw a relatively flat trend pattern. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2021, the total area harvested in terms of sugar production in India amounted to less than X ha, standing approx. at the year before. In general, the harvested area saw a relatively flat trend pattern.

Sugar Exports

Exports from India

For the fourth consecutive year, India recorded growth in overseas shipments of sugar, which increased by 23% to X tons in 2021. Overall, exports continue to indicate a buoyant increase. The most prominent rate of growth was recorded in 2019 with an increase of 54%. Over the period under review, the exports hit record highs in 2021 and are expected to retain growth in years to come.

In value terms, sugar exports soared to $X in 2021. Over the period under review, exports saw a buoyant increase. The pace of growth appeared the most rapid in 2019 when exports increased by 35%. The exports peaked in 2021 and are expected to retain growth in the immediate term.

Exports by Country

Bangladesh (X tons), Indonesia (X tons) and Sudan (X tons) were the main destinations of sugar exports from India, with a combined 45% share of total exports. The United Arab Emirates, Djibouti, Somalia, Sri Lanka, Iran, Saudi Arabia, Afghanistan, Malaysia, Pakistan and Nepal lagged somewhat behind, together comprising a further 43%.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Afghanistan (with a CAGR of +108.2%), while the other leaders experienced more modest paces of growth.

In value terms, Bangladesh ($X), the United Arab Emirates ($X) and Sudan ($X) were the largest markets for sugar exported from India worldwide, with a combined 44% share of total exports. Indonesia, Iran, Djibouti, Somalia, Sri Lanka, Malaysia, Saudi Arabia, Afghanistan, Pakistan and Nepal lagged somewhat behind, together accounting for a further 40%.

Afghanistan, with a CAGR of +92.8%, saw the highest rates of growth with regard to the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2021, the average sugar export price amounted to $X per ton, rising by 7.7% against the previous year. Over the period from 2012 to 2021, it increased at an average annual rate of +2.8%. The pace of growth was the most pronounced in 2017 when the average export price increased by 21% against the previous year. As a result, the export price attained the peak level of $X per ton. From 2018 to 2021, the average export prices failed to regain momentum.

There were significant differences in the average prices for the major overseas markets. In 2021, the country with the highest price was the United Arab Emirates ($X per ton), while the average price for exports to Afghanistan ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+11.8%), while the prices for the other major destinations experienced more modest paces of growth.

Sugar Imports

Imports into India

Sugar imports into India reduced rapidly to X tons in 2021, falling by -54.8% against the previous year. Over the period under review, imports, however, continue to indicate buoyant growth. The growth pace was the most rapid in 2013 with an increase of 113% against the previous year. Imports peaked at X tons in 2017; however, from 2018 to 2021, imports failed to regain momentum.

In value terms, sugar imports plummeted to $X in 2021. Overall, imports, however, showed a remarkable increase. The growth pace was the most rapid in 2013 when imports increased by 104% against the previous year. Over the period under review, imports attained the peak figure at $X in 2017; however, from 2018 to 2021, imports remained at a lower figure.

Imports by Country

In 2021, Brazil (X tons) was the main sugar supplier to India, accounting for a approx. 99% share of total imports.

From 2012 to 2021, the average annual growth rate of volume from Brazil totaled +6.3%.

In value terms, Brazil ($X) constituted the largest supplier of sugar to India.

From 2012 to 2021, the average annual growth rate of value from Brazil totaled +13.3%.

Import Prices by Country

In 2021, the average sugar import price amounted to $X per ton, picking up by 72% against the previous year. In general, import price indicated a prominent increase from 2012 to 2021: its price increased at an average annual rate of +6.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, sugar import price increased by +89.3% against 2018 indices. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

As there is only one major supplying country, the average price level is determined by prices for Brazil.

From 2012 to 2021, the rate of growth in terms of prices for Brazil amounted to +6.6% per year.

Source: IndexBox Platform