Sri Lanka: Sugar Market 2022

Sugar Market Size in Sri Lanka

In 2021, the Sri Lankan sugar market decreased by -5.3% to $X for the first time since 2018, thus ending a two-year rising trend. In general, consumption showed a relatively flat trend pattern. Over the period under review, the market attained the peak level at $X in 2016; however, from 2017 to 2021, consumption remained at a lower figure.

Sugar Production in Sri Lanka

In value terms, sugar production dropped to $X in 2021 estimated in export price. Over the period under review, production, however, saw perceptible growth. The most prominent rate of growth was recorded in 2015 with an increase of 85%. Over the period under review, production hit record highs at $X in 2020, and then dropped slightly in the following year.

The average yield of sugar in Sri Lanka stood at less than X kg per ha in 2021, flattening at the year before. In general, the yield showed 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, approx. less than X ha of sugar were harvested in Sri Lanka; remaining relatively unchanged against the previous year's figure. Over the period under review, the harvested area continues to indicate a relatively flat trend pattern.

Sugar Exports

Exports from Sri Lanka

In 2021, approx. X tons of sugar were exported from Sri Lanka; dropping by -5.4% compared with the previous year. In general, exports, however, continue to indicate a perceptible increase. The most prominent rate of growth was recorded in 2014 when exports increased by 167%. As a result, the exports reached the peak of X tons. From 2015 to 2021, the growth of the exports failed to regain momentum.

In value terms, sugar exports dropped modestly to $X in 2021. Overall, exports, however, saw a strong increase. The pace of growth was the most pronounced in 2013 with an increase of 90% against the previous year. The exports peaked at $X in 2014; however, from 2015 to 2021, the exports remained at a lower figure.

Exports by Country

Maldives (X tons), Canada (X tons) and Australia (X tons) were the main destinations of sugar exports from Sri Lanka, with a combined 67% share of total exports.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Canada (with a CAGR of +17.5%), while the other leaders experienced more modest paces of growth.

In value terms, Maldives ($X), Canada ($X) and Australia ($X) were the largest markets for sugar exported from Sri Lanka worldwide, together comprising 64% of total exports.

Maldives, with a CAGR of +17.0%, recorded the highest growth rate of the value of exports, in terms of 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

The average sugar export price stood at $X per ton in 2021, growing by 3% against the previous year. Over the period under review, the export price continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2015 when the average export price increased by 57% against the previous year. The export price peaked at $X per ton in 2018; however, from 2019 to 2021, the export prices stood at a somewhat lower figure.

Prices varied noticeably country of destination: the country with the highest price was the United Arab Emirates ($X per ton), while the average price for exports to Canada ($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 Saudi Arabia (+16.8%), while the prices for the other major destinations experienced more modest paces of growth.

Sugar Imports

Imports into Sri Lanka

After two years of growth, supplies from abroad of sugar decreased by -16.6% to X tons in 2021. Overall, imports, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 with an increase of 24% against the previous year. Imports peaked at X tons in 2016; however, from 2017 to 2021, imports stood at a somewhat lower figure.

In value terms, sugar imports declined slightly to $X in 2021. In general, imports saw a mild downturn. The growth pace was the most rapid in 2020 when imports increased by 38%. Over the period under review, imports hit record highs at $X in 2016; however, from 2017 to 2021, imports stood at a somewhat lower figure.

Imports by Country

In 2021, India (X tons) constituted the largest sugar supplier to Sri Lanka, with a 87% share of total imports. Moreover, sugar imports from India exceeded the figures recorded by the second-largest supplier, Thailand (X tons), tenfold. The United Arab Emirates (X tons) ranked third in terms of total imports with a 2.2% share.

From 2012 to 2021, the average annual rate of growth in terms of volume from India totaled +5.4%. The remaining supplying countries recorded the following average annual rates of imports growth: Thailand (-1.5% per year) and the United Arab Emirates (+21.3% per year).

In value terms, India ($X) constituted the largest supplier of sugar to Sri Lanka, comprising 78% of total imports. The second position in the ranking was held by Thailand ($X), with a 17% share of total imports. It was followed by the United Arab Emirates, with a 1.7% share.

From 2012 to 2021, the average annual growth rate of value from India stood at +2.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Thailand (+2.5% per year) and the United Arab Emirates (+17.7% per year).

Import Prices by Country

In 2021, the average sugar import price amounted to $X per ton, jumping by 16% against the previous year. Overall, the import price, however, showed a pronounced decline. The most prominent rate of growth was recorded in 2017 when the average import price increased by 17% against the previous year. The import price peaked at $X per ton in 2012; however, from 2013 to 2021, import prices remained at a lower figure.

Prices varied noticeably country of origin: the country with the highest price was Thailand ($X per ton), while the price for the United Arab Emirates ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Thailand (+4.0%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform