Sucrose in solid form market in Southern Asia

Earlier Report Observations

The market for chemically pure sucrose in solid form in Southern Asia expanded from 38 015 thousand tons in 2018 to 40 757 thousand tons in 2019. This initial growth was supported by the introduction of the Minimum Support Price (MSP) and quota system for sugarcane in India in June 2018, which stabilized farmer incomes and encouraged cultivation. Concurrently, continuous improvement in Total Recoverable Sugar (TRS) levels in sugarcane enhanced milling efficiency and output quality.

Market volume dipped to 37 973 thousand tons in 2020 before recovering to 39 347 thousand tons in 2021. While TRS levels further increased, boosting production efficiency, government incentives for ethanol production from sugarcane promoted sector diversification. The implementation of the Food Safety and Standards (Labelling and Display) Regulations in 2022 standardized packaging and claims for sugar products, coinciding with a period of market stabilization.

A significant surge occurred in 2023, with market volume reaching 44 484 thousand tons. This jump aligned with the draft Sugar (Control) Order 2024, which proposed to modernize six-decade-old regulations by permitting the domestic sale of raw sugar. Subsequent measures in 2024, including the lifting of the ban on ethanol production from sugarcane juice and an increase in the Minimum Support Price, continued to shape the market's direction.

Production sucrose in solid form in Southern Asia

In kind, 2017-2020, K t

Top producers of sucrose in solid form, 2017-2020

World map of production of sucrose in solid form, 2017-2020

After two consecutive years of growth, solid sucrose production in Southern Asia experienced a decline. In 2019, production reached its peak at 40 854 K t, marking a 5.6% increase from the previous year. However, by 2020, output had fallen to 37 153 K t, representing a 9.1% decrease compared to 2019.

Annual dynamics of production in Southern Asia in kind, 2017-2020, K t

Exports sucrose in solid form from Southern Asia

Exports in kind, K t

The market showed significant volatility throughout the period. In 2018, exports peaked at 1 052 K t, reflecting a substantial 66.3% year-over-year increase. By 2020, however, exports had plummeted to just 22 K t, a dramatic 95.8% decline from the previous year. This created a 49-fold difference between the high in 2018 and the low in 2020.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, Southern Asia's solid sucrose exports were distributed across a wide range of markets. China accounted for 8.5% of exports, Djibouti for 4.3%, and Asia (not elsewhere specified) for 4.2%. Together, these three markets represented only 16.9% of total export flows, indicating a highly diversified trade pattern.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, M $ US

Export values displayed considerable instability, pointing to a volatile market environment. In 2018, exports reached their highest point at 432.1 M $ US, with a 21.7% increase from the previous year. By 2020, however, export values had dropped sharply to 13.4 M $ US, a 93.9% decrease compared to 2019. This resulted in a 32-fold gap between the 2018 peak and the 2020 low.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, M $ US

Between 2017 and 2020, Southern Asia's solid sucrose exports in value terms were spread across numerous partner countries. China represented 8.8% of export value, Djibouti 3.9%, and Asia (not elsewhere specified) 3.6%. Collectively, these three markets accounted for just 16.3% of total export flows, demonstrating a broad distribution without any single dominant partner.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports sucrose in solid form to Southern Asia

Imports in kind, K t

Import volumes showed noticeable fluctuations during this period. In 2018, imports hit their lowest point at 389 K t, reflecting a 23.2% decline from the previous year. By 2020, imports had surged to 842 K t, marking a substantial 104.7% increase compared to 2019. This created a 2.2-fold variation between the 2018 low and the 2020 high.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, Southern Asia's solid sucrose imports were widely dispersed across supplying countries. The United Arab Emirates accounted for 8.2% of imports, Thailand for 5.1%, and Ukraine for 2.3%. Together, these three countries represented only 15.6% of total import flows, highlighting the region's diverse sourcing strategy.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, M $ US

Solid sucrose imports into Southern Asia grew for the second consecutive year in 2020, reaching 609.3 M $ US. This represented a significant 46.0% increase compared to 2019. However, looking at the broader 2017-2020 period, imports actually decreased by 8.9%, with a compound annual growth rate of 3.1%. The lowest import value was recorded in 2018 at 411.7 M $ US, which marked a 38.5% decline from the previous year.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, M $ US

Between 2017 and 2020, the country distribution of Southern Asia's solid sucrose imports in value terms remained highly scattered. The United Arab Emirates accounted for 9.2% of import value, Thailand for 4.9%, and Ukraine for 2.8%. Together, these three countries represented just 16.8% of total import flows, with no single partner emerging as clearly dominant.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020