India’s sugar exports will likely rise after March when international prices of the sweetener may go up following erratic weather in some other producing nations...
India’s sugar exports will likely rise after March when international prices of the sweetener may go up following erratic weather in some other producing nations, the founder of Platts’ Kingsman, a global consultancy, said on Monday.
“I am optimistic that India will be able to export into the rising market by March as bad weather in Central America, Thailand, EU and in some parts of India will lead to a rise in global prices,” Jonathan Kingsman told reporters on the sidelines of a conference here. Reduced cane acreage in China will also help boost global prices, he said.
Currently, sugar exports from India aren’t viable as its prices are higher than the levels globally.
Earlier this month, the government made it mandatory for mills to export 4 million tonnes of sugar in 2015-16 to cut the inventory so that a fall in domestic sugar prices could be arrested. However, government will have to offer subsidies to make the exports viable, Kingsman said.
“I am optimistic that India will be able to gradually export into a rising market,” he added.
Narendra Murkumbi, managing director of Shree Renuka Sugars — the country’s largest sugar refiner—said domestic companies may report higher losses due to compulsory exports as global prices are ruling low. The exports could become viable if the government took steps to make cane prices affordable, he said.
Raw sugar futures gained 0.2% at 12.42 cents a pound by 5:35 pm (India time) on ICE Futures in New York. The futures prices have advanced 19% since hitting a seven-year low on Aug 24.