Indian sugar exports held back despite competitive prices

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Sugar exports from India seem to have slowed down in spite of competitive prices as a result of container shortage and internal logistics issues. Millers, exporters and trade houses have been left concerned since the allocated Maximum Admissible Export Quota (MAEQ) of 6 mmt of would help bring down stockpiles and support the domestic prices which at odds have been sharply falling.

In conversation with ChiniMandi News, a market analyst from a top trading house who doesn’t wish to be identified in line with their organisation’s policies said, “The total contracted raw sugar from India is around 1.5 to 1.6 mmt and 300 to 400K whites. The expected export quantity of whites from India would be somewhere around 1.8-2.0 mmt depending on the demand basically from destinations such as Sudan, Somalia, Afghanistan and Sri Lanka.

“The world market has tight raw sugar supply in next 4 to 5 months, India being the only supplier, as Brazil 2021/22 crop yet to start. For 2021/22 CS Brazil crop, rainfall in this month is really important and below normal weather could push front months price even higher. And Thai 20/21 crop is being lower YoY. Overall the international sugar prices looks constructive, broad range 14.5c to 17.2c” He further added.

The March contract, which expires on February 12 2021 landed at $463.60 Raw sugar also advanced in New York and closed at 16.29/c. At the time of writing this article
London White Sugar front month contract is trading at $462.10/tn, whereas New York Sugar front month contract is trading at 16.25/lb.

In the Indian market, White sugar of the season 2020/21 icumsa 100 ready delivery for exports is trading at Rs.26100 to Rs.26200 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600- 1200 is at Rs.26000 to Rs.26100 factory basis. Exporters have been facing problems with shortages of containers and freight rates.

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