India launches 62.6 billion subsidy plan! To export 1.8 million tons of white sugar to China

      India produced more than 30 million tons of sugar in 2018, making it the world's largest sugar producer, sina finance reported. But inventories have reached 14.02 million tons this year and are expected to swell to 16.2 million tons by the end of the year. So India is pinning its hopes on the Chinese market and recently launched a subsidy programme to boost exports.

       According to media reports, India last month approved a subsidy measure worth 62.68 billion rupees, which will help the country's sugar exporters meet the cost of upgrading, processing sugar and sea freight, while aiming to increase exports to 6 million tons. Not only that, but Indian producers have been talking to Chinese buyers in recent days about exports, which are expected to begin shipping to China next month.

      In fact, this is not the first time India has turned to China for sugar exports. Last year, under a minimum indicative export quota system, India was required to export 2m tonnes of sugar. But the country signed only 200,000 tons of export contracts in the first half of 2018, as overseas buyers balked. Then, suddenly, India unilaterally offered to fill the gap in China's sugar demand, apparently to sell the remaining 1.8 million tons to China. But industry insiders immediately broke down India's plan, saying it had a wall in front of it.

      All the time, our country white sugar mainly imports from Brazil. Last year, Brazil's total sugar exports fell 25.8 percent year on year, but its exports to China bucked the trend, surging 136.5 percent to 780,000 tons. With the gap between India and Brazil widening, India can't wait to produce new sugar crops, and its producers are eager to woo Chinese buyers with their huge stockpiles of sugar.

      But leaving aside the fact that Indian sugar has not yet been granted access to the Chinese market, Brazilian agricultural products have repeatedly been granted access to the Chinese market. In recent years, in addition to white sugar, Brazilian soybean and pork exports to China all showed an upward trend. Given the trend of co-operation between China and Pakistan in the import and export of agricultural products, it is hard for India, even if it is eager, to get involved.

From: sina finance and economics