New Delhi: In a good news for India, China has signed a memorandum of understanding with India to purchase 50,000 tonnes of raw sugar, reports Cogencis. on Friday, the delegation of China was in New Delhi to discuss sugar business opportunities. Sugar mills in India are eyeing to export sugar surplus in a bid to reduce the glut and also leaving no stone unturned to lock in deals with buyers to commence the export.
According to the reports, Dhampur Sugar Mills would export the quantity to four refineries in China.
It is expected that in the sugar season 2019-2020, China is likely to produce 10 MMT of sugar, whereas their annual consumption is 15 MMT. To fulfil the domestic requirement, China imports sugar from other countries, therefore in this season country will import 5 MMT of sugar.
To reduce the sugar surplus, the Indian government had announced financial assistance on 60 LMT sugar export for 2019-20 sugar season. The policy involves financial aid of Rs 10,448 per metric tonne (mt) to sugar mills.
Sugar mills across India have already started gearing up for exports as it would rope in financial assistance from the Government and ease the financial burden and tall stockpiles. Recently, millers contracted 20,000 metric tonnes of sugar export from Maharashtra to Sri Lanka, Yemen and Somalia.