Mumbai: Frosts and drought in Brazil have impacted the sugar sector in the country. Sugar production is also expected to fall down and as a result, there will be a drop in the supplies of sugar from Brazil. This also provides opportunities for India to export raw sugar.
As per the news report published by Reuters, buyers are securing supplies by signing contracts in advance from the South Asian country.
According to the National Federation of Cooperative Sugar Factories Limited (NFCSF), the latest discussions with the major sugar export houses confirms that, they are doing a forward contract with sugar mills for the export of raw sugar for the deliveries in December and January months at a price range of Rs 3240-3280/Qtl on a free-on-board (FOB) basis.
“If the sugar mills are able to produce raw sugar at the beginning of crushing season; sugar mills will get the economical advantage,” NFCSF further added.
Usually, Indian traders sign contracts one or two months ahead of starting cane crushing operations by the sugar mills.
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