ISMA optimistic about sugar exports to pick inspite of COVID-19

360

New Delhi: As per reports available, sugar mills have despatched almost 30 lakh tonnes of sugar from their factories for export against MAEQ of 60 lakh tonnes till 15.3.2020.  As per market sources, about 36-38 lakh tonnes of sugar have been contracted for exports so far.

The current unprecedented situation due to outbreak of COVID-19 has impacted the global sugar prices also. However, according to industry body Indian Sugar Mills Association Association – (ISMA) the impact could be temporary.  The fall in sugar production from Thailand to the tune of 5 million tons as compared to last year, and the recent decision of Indonesian Government to allow 600 ICUMSA sugar at a concessional import duty from India, Australia and Thailand, gives an additional opportunity to India to export large quantities of sugar to Indonesia.

In addition, Indonesian Government has issued an additional import quota to its refineries and considering that sugar availability from Thailand is lower to the extent of 5 million tons, which will also reduce sugar exports from Thailand to Indonesia, the Indian raw sugar has a very good chance of getting exported to Indonesia.  Hence, it is expected that sugar exports from India will again pick up soon.

The COVID-19 impact has also reduced sugar off-take from sugar mills in the last 15 days or so.  It is understood that sugar in the pipeline would have got sold in the wholesale and retail market in the last couple of weeks.  As per experts in the market, it is expected that fresh buying from the sugar mills may take place soon because the pipeline would have largely dried up during the last couple of weeks. That should control sugar prices and the buying should help the sugar mills.

 To Listen to this News click on the play button.

LEAVE A REPLY

Please enter your comment!
Please enter your name here