1. Sugar exports slip as global rates drop to $375 per tonne

Sugar exports slip as global rates drop to $375 per tonne

Sugar exports from the country have slowed down with the international rates of the sweetener dropping to $ 375-385 per tonne from around $425 per tonne 10 days ago.

By: | Updated: February 16, 2016 12:37 AM

Sugar exports from the country have slowed down with the international rates of the sweetener dropping to $ 375-385 per tonne from around $425 per tonne 10 days ago.

Sugar mills from the country may find it difficult to meet the mandatory export targets set by the Centre due to a fall in international prices, top officials of Bombay Sugar Merchants Association said.

The government had asked mills to export 40 lakh tonne of sugar, pro-rated based on their past production, by September 2016. “If the millers meet export targets, they will become eligible for a subsidy of R45 per tonne. However, domestic rates are more attractive at R3,125-3,250 per quintal and now they are preferring to sell in the domestic market,” Mukesh Kuvedia, secretary general of the association, said.

The sugar mills have contracted to export 900,000 tonne of the sweetener so far in the 2015-16 marketing season. Out of the contracted quantity, mills have dispatched nearly 700,000 tonne, Kuvedia said, adding that reaching a target of some 40 lakh tonne looks difficult. No new deals are being contracted, he said.

“The international rates have dropped down due to the fall in Brazilian Real. Moreover, the country is anticipating a good crop which is expected to come into the market soon and this could also impact Indian exports,” Kuvedia said.

A jump in Brazil’s sugar production this season will be offset by smaller harvests elsewhere including in India and Thailand. Global production will fall short of consumption by 5.5 million tonne in the year ending in September and another deficit of 6.2 million tonne is forecast for the following year by some trade agencies.

Meanwhile, action against sugar factories in Maharashtra continued with the Sugar Commissionerate cancelling licences of 3 mills for their failure to make 80% of the FRP dues for the 2015-16 season.

After hearings of 41 mills for non-payment of FRP for the 2015-16 season, the Commissionerate has decided to cancel licences of 3 mills, Vipin Sharma, Maharashtra sugar commissioner, said.

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