Sugar prices fall in international markets, could impact exports

The sugar season in India has simply concluded and about 35 lakh tonne extra sugar has been produced in contrast with final 12 months.

Sugar costs have declined by almost $50 per tonne in worldwide markets for the primary time in two months, and this might affect the Indian sugar sector, business individuals stated.

On Thursday, world market costs of refined sugar have been $423 per tonne, whereas crude sugar was buying and selling at 17 cents per pound. On June 8, the value of refined sugar was $467. The worth of crude sugar then was 17.80 cents per pound.

The sugar business had predicted that manufacturing would decline this 12 months because of the drought in Brazil. Sugar costs in worldwide markets have been rising for the previous couple of months because the demand for ethanol was anticipated to extend and Brazil’s shift in the direction of extra ethanol will even have an effect on sugar manufacturing, business individuals stated.

“The provision of sugar from Brazil to the world market was declining because of the stagnant progress of sugarcane owing to lack of rains. However within the first week of June, Brazil acquired a mean of 15-20 mm of rain. This saved the broken sugarcane,” Abhijit Ghorpade, a sugar exporter, stated.

The sugar season in India has simply concluded and about 35 lakh tonne extra sugar has been produced in contrast with final 12 months. Sugar export agreements are in full swing. Costs in world markets have come down in anticipation of surplus sugar from India coming into the worldwide market, Mukesh Kuvediya, common secretary, Bombay Sugar Retailers, stated.

With the potential of rains, greater than three million tonne of sugar is anticipated to enter the market, merchants stated. At present, as much as 35% of the sugar season is over in Brazil. Kuvediya stated it will be tough to foretell the state of sugar on the earth market till the sugar season reaches 70% and the monsoon season performs out utterly.

India, nonetheless, is prone to export one other 5-6 lakh tonne below the open common licence, he stated. Sri Lanka has banned sugar imports resulting from extra shares and so there may be not a lot scope there, he defined. Though the value of sugar within the world market has come down, it’s anticipated to stay low just for a brief interval, commerce sources stated.