Fall in global sugar prices discourages exports

Falling sugar prices in the recent weeks in international markets have made exports an unviable proposition. Sugar prices have come down to nearly $675 per tonne in international market from over $850 per tonne in January. In india, at present sugar prices are in the range of Rs 2550 to 2,700 per quintal which leaves hardly any margin for exporters at the current international prices. Similarly wheat prices are quoted at Rs 1300 per quintal in Delhi market and in other markets it is ranging between Rs 1100 and 1200 per quintal.

Sugar industry believes that Brazil has started offloading sugar from the global market heavily affecting the price on exchanges and now it appears to be a missed opportunity for Indian sugar mills and exporters. Due to the delays in the government decision on allowing 500,000 tonnes of sugar for exports and the drastic fall in sugar prices in the global markets, industry sources believe that exports are now non lucrative.

Rajendra Girme, Indian Sugar Mills Assocation board member and the managing director of Saswad Mali Sugar Mill (a private sugar mill in operation since 1932 in Maharashtra), opined that the government should have taken decision on sugar exports quite a long back when the prices have soared in the global markets. "Ironically, due to successive deferment of decision the sugar farmers and mills are at a severe loss. Sugar prices have come down sharply in last three months but there is a hope that they will further increase. The government should not further waste time but quickly take a decision on sugar exports.&"

"World markets have not considered Indias sugar supply as of now and if government allows exports of sugar, prices in international market could fall further loosing charm in sugar exports,&" said an executive with a multi national trading company.

source: sify