Brisbane, Oct 22: Speculations that Russia would not step up imports of raw sugar when its seasonal tariff concludes on November 30, was bad news for the Australian sugar industry which had hoped to sell the commodity into the Russian market, industry sources said."If it is true then it will have a negative impact on price because the market is so delicately balanced. We would have hoped to sell more sugar into there," Ross Chapman, deputy general manager of the main grower organisation Canegrowers said. Russia might not buy as much sugar as was hoped when it lifts its seasonal tariff on November 30 because of surplus warehouse supplies following a flood of cheap imports in 1999, said sources.
Russian sugar imports could fall to just over four million tonnes in 1999/2000 from more than 5.3 million in the first eight months of 1999, Sergei Gudoshnikov, an economist at the London-based International Sugar Organisation, said. This would put a further dampener on the market awash with sugar, Chapman said.
"I'm a bit surprised the market hasn't reacted badly to the news. But we are talking about next year's crop and we have a long way to go yet," he said. Chapman said there was hope the tensions between Australian and Indonesia would be resolved after recent reports that Indonesia would cut imports from Australia because of the conflict in East Timor. "One would hope the current situation is only temporary. We have sold sugar to Indonesia before the crisis and we are hopeful to have Indonesia as a good customer in the future," he said.
With the majority of Australia's 1999 cane crush now completed, it is expected to wind up within the next month with only a few mills expected to crush past Christmas. Five of Queensland's 26 mills finished their crush this week, with many winding down weeks ahead of the schedule. "The majority is going to finish weeks ahead which is an indication of how much less sugar there was. It's very disappointing," Chapman said.
But Queensland sugar sources remained upbeat about next year's crop with encouraging weather conditions in the sugar-rich belt through central Queensland. "The prospects are set for a very good crop next year given the early finish this year and hopefully good, normal seasonal weather," Chapman said. Queensland is expected to produce about five million tonnes of raws this season, with Australia overall headed for about 5.37 million tonnes.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.