Indian trade houses vying for sugar exports due to bullish global demand and suppressed domestic prices
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Exporters are getting Rs 1-2 per kg more than the minimum selling price (MSP) of Rs 31 per kg set by the government. However, traders said a large quantity of sugar is sold below MSP by the sugar mills due to surplus availability.
Agencies
Thanks to the profitability and good demand for raw sugar, a section of traders is trying to get an additional quota of a million tonnes exclusively for export of raw sugar.
Sugar exports have become more lucrative than sale in the domestic market for India’s traders thanks to increase in international prices, which are supported by concerns over production by major sugar producers such as Brazil and Thailand and rising crude oil prices.
Brazilian shipping woes, higher supply deficit to buoy Indian sugar exports
March 02, 2021
A nearly five-million tonnes (mt) sugar deficit projected by the International Sugar Organization (ISO) is likely to keep sugar prices firm this season (October 2020-September 2021) with Brazilian shipping woes likely to help India’s cause to export more of the commodity.
The ISO, in its quarterly outlook, has raised the sugar deficit during the current season to 4.782 mt from its earlier estimate of 3.50 mt three months ago.
This will see production dropping this season by 1.24 per cent to 169.04 mt (171.16 mt), while consumption is seen increasing to 172.82 mt (170.24 mt).
Farmers protest in Muzaffarnagar villages more about sugarcane issues than agri laws
The opposition to these laws becomes louder and more visible as one moves towards the Jats-dominated areas in western Uttar Pradesh.
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Farmers in support of the Bharatiya Kisan Union attend ‘Kisan Mahapanchayat’ against the three new farm laws in Muzaffarnagar on Friday | PTI By PTI
MUZAFFARNAGAR: The old saying that agriculture is the best way to earn a living and working for someone else is the worst has given way to new realities, says Raj Kumar, a farmer from Satheri village in this western Uttar Pradesh district, a region where farmers agitation seems to be driven more by the stagnant sugarcane prices and the stray cattle menace, than by the three contentious agri laws.
Indonesia may emerge as the biggest importer of Indian sugar
Iran continues to use the accounts for buying these commodities but the amount in the accounts is depleting. January 12, 2021 / 08:59 PM IST
Uttam Sugar Mills | Company reported profit at Rs 11.70 crore in Q3FY21 against Rs 13.32 crore, revenue rose to Rs 433.26 crore from Rs 426.68 crore YoY.
Indonesia could emerge as the largest importer of raw sugar from India and may make up for any drop in exports to Iran, where shippers are facing payment problems.
“The roles of Indonesia and Iran with regard to India’s sugar exports are set to change with Jakarta likely to import over 10 lakh tonnes against three lakh tonnes last season (October 2019-September 2020),” said MEIR Commodities India Managing Director Rahil Shaikh.
Sugar exporters keep a watch as cabinet expected to take a decision on subsidy today
The incentive for exports, which will boost shipments, could be given for 50-60 lakh tonnes of sugar, say sources. December 16, 2020 / 04:32 PM IST
The Union Cabinet may consider incentives for sugar exports for the current season at a meeting later on December 16. A favourable decision will provide some momentum to sugar shipments that came to a standstill on October 1.
“The cabinet is meeting today and we hear it has been listed for discussion,” said a sugar mill official, who didn’t wish to be identified.
According to Abinash Varma, Director-General of Indian Sugar Mills Association (ISMA), there was talk of the government providing a subsidy of about Rs 6,000 a tonne.