Sugar exports to cross 11 lakh tonnes

New Delhi: Sugar exports were likely to cross 11 lakh tonnes by the end of the current crop year (October-September) but many traders are not impressed and said there is tremendous potential which has not yet been tapped. “Orders executed in the current crop year have crossed nine lakh tonnes and are expected to touch 11 lakhs by September with contracts of over a lakh tonnes yet to be shipped,” a market analyst said.

Confirming it, Indian Sugar Mills Association’s Director-General SL Jain said, “Exports will soon cross one million mark; orders of over 50,000 tonnes booked prior to the ban by Pakistan were yet to be sent and another 54,000 tonnes was awaiting shipment from Mumbai port alone.”

But many leading exporters were not satisfied and one of them said fresh contracts were difficult to come by particulary in Africa, where there was enough potential. He said if the four lakh tonne exported to Pakistan was deducted as no more trade was possible with the country due to the ban, India’s exports were a paltry half a million tonnes.

He pointed out that the bulk of Indian exports were to a handful of countries and that too by very few exporters. The market analyst said Sri Lanka was all choked up, no fresh tenders were being floated by Bangladesh and contracts to Indonesia were yet to be executed.
Mumbai port also took the flak from exporters who said that the two year old sugar was being transferred to polythene bags from the jute ones in the open, despite rains thus affecting quality. Some of the exporters had shifted base to the Tuticorin port, where they found the logistics and infrastructure more quality sensitive.

Moreover the export market comprises barely half a dozen major players. Non-Pakistan exports of five lakh tonnes had been done mostly by Indian sugar and General Industry Export-Import Corporation (one lakh tonne), Shakti Sugars (1.4 lakhs), Renuka Sugars and Banari Aman (60,000 tonnes each), Godavari Sugar (40,000) Thiroo Arooran sugar (70,000). Two more factors impeding India’s search for new markets were that it was primarily a refined sugar exporter, when demand was for raw sugar in many countries and Icumsa levels were much higher than international standards.

-- PTI