Brazilian output and global volatile prices likely to affect Indian sugar exports

282

Pune: The increase in the sugar output in Brazil and volatile global prices will impact the sugar export from India.

“The demand for raw sugar in the world has increased more than the white sugar and the prices of both are almost equal at Rs 2,700 per quintal. The sugar mills should tap the opportunity immediately,” said a sugar trader.

“The sugar prices in the global market are fluctuating and the traders are cautiously signing the export deals,” he said.

According to experts the delay in export will increase the losses of the mills. As per the Indian Sugar Mill Association (ISMA), the sugar mills can grab the opportunity to export sugar till March-April 2021 before the Brazilian sugar enters the world market.

Brazil is estimated to produce a record high of 38 million tonnes sugar from April 2021. This would wean the opportunity of Indian mills to sell sugar in the world market.

The central government in order to boost sugar export has approved subsidy of Rs 3,500 crore to sugar mills to export 60 lakh tonnes of sugar for 2020-21 season.

In a press statement, ISMA said, “Taking the note that the world wants Indian sugar and noting that the sugar production has lowered in Thailand and EU, India should be able to achieve its set target of exporting sugar with the support of Rs 6,000 per tonne export subsidy.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here