Industrial demand for sugar that estimates for 60 per cent of the total domestic consumption, is assumed to drop 8-9 per cent in this sugar season (SS) due to restaurants, hotels, and cafes continuing to be closed, and people are avoiding to go to crowded places, CRISIL Research stated in its report. People are avoiding going to a crowded area in fear of the widespread caused by the pandemic COVID-19.
The consumer’s behaviour towards sugar amid the pandemic COVID-19:
The complete lockdown the people who love sweets have just controlled on their taste buds. People have flooded social media platforms by sharing homemade cake, pastries, brownies, chocolates and other sweet dishes that signify the consumer’s behavior towards sugar consumption. People are avoiding buying things from outside in fear of the contamination. Restaurant chains like Dunkin Donuts, Cafe Coffee Day, Starbucks are witnessing less demand from consumers, and so they are not demanding more sugar.
People are shifting towards buying the packaged food, chocolates and beverages. Even beverage making outlets are also facing the fall in orders and therefore, not purchasing more sugar. Sugarcane farmers are also troubled due to the pandemic COVID-19. No one is showing interest in buying their crops as there is a low demand for sugar in the market.
The sugar season has been disturbed by the pandemic COVID-19:
Sugar offtake is going to continue even in the contemporary sugar season (October 2019-September 2020) despite the pandemic coronavirus disturbances as light exports are assumed to make up for the shortfall in household consumption, revealed by the report.
The whole story of demand for sugar according to CRISIL Research:
Industrial demand for sugar that estimates for 60 per cent of the total domestic consumption, is expected to fall 8-9 per cent in this sugar season (SS) due to restaurants, hotels, and cafes continuing to be closed, and people are avoiding to go to crowded places, CRISIL Research said in its report.
The consumption of sugar in household:
Household consumption that estimates for the remaining 40 per cent, however, is assumed to move just 2-3 per cent as increased repression at home has witnessed a rush in craving for biscuits and bakery products, it replied.
Also, customers are expected to favour packaged sweet products, such as chocolates and cookies above loose sweets in the anticipated festive season due to the fear of contamination of COVID-19.
The export and import of the sugar amid the pandemic situation:
However, the shortfall in overall domestic demand will be more exceeding than made up by exports that are supposed to burst more than 30 per cent to 5 million tonnes in SS 2020, CRISIL reported.
The reason behind the shortfall in the domestic demand for sugar:
This is essential because of more under production in Thailand that has moved its chief importers Indonesia, Bangladesh, Afghanistan, Kenya, and Iran towards India, it concluded.
The total sugar production in the year 2020:
Sugar production is assumed to be at 305 lakh tonnes throughout the sugar year ending 2021, and 272 lakh tonnes in Sugar Season 2020 ending September.