Despite Covid sugar offtake to remain unaffected

New Delhi, Aug 19 (IANS) Despite the Covid-19 pandemic, sugar offtake in the current sugar season is expected to remain more or less at last season’s levels, Crisil Research said on Wednesday.

The sugar season runs from October-September.

According to Crisil Research, buoyant exports are expected to make up for a visible shortfall in domestic consumption.

“Industrial demand for sugar, which accounts for 60 per cent of total domestic consumption, is expected to fall 8-9 per cent in SS 2020 due to hotels, restaurants and cafes remaining shut and people avoiding crowded places,” Crisil Research said in a statement.

“Household consumption, which accounts for the remaining 40 per cent or so, however, is expected to slip just 2-3 per cent. Prolonged confinement at home has seen a surge in appetite for biscuits and bakery products.”

As per the statement, consumers are likely to prefer packaged sweet products, such as chocolates and cookies over loose sweets in the upcoming festive season for fear of contamination.

“The shortfall in overall domestic demand, however, will be more than made up by exports, which are expected to spurt more than 30 per cent to 5 million tonne in SS 2020,” the statement.

“This is mainly because of lower production in Thailand, which has turned its key importers – Indonesia, Kenya, Bangladesh, Afghanistan and Iran – towards India.”

–IANS

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