India could export additional 2 million tonnes of sugar to take advantage of surge in global demand before supplies from Brazil boost global glut next month, industry group says
March 20, 2012
– India’s sugar mills plan to increase raw sugar exports to take advantage of an increase in demand from refiners before supplies from Brazil boost a global glut next month, Business Standard reported March 20.
India has allowed mills to export 2 million tonnes of raw and refined sugar since the start of the crop year October 1, and the country could export an extra 2 million tonnes, according to the National Federation of Cooperative Sugar Factories Ltd.
Global refineries are seeking supplies, which is spurring a higher demand for raw sugar, Abinash Verma, director general of the Indian Sugar Mills Association, said. India could increase raw sugar shipments to the Middle East, Indonesia, and East Africa as a result of lower shipping costs, Verma said.
The country will miss an opportunity to export more raw sugar if the government doesn’t approve shipments quickly, India Sugar Mills Association managing director Vinay Kumar said.
India’s sugar output increased 14% to 21.2 million tonnes from Oct. 1 to March 15, according to the Indian Sugar Mills Association. The country’s harvest may reach 26 million tonnes in the year ending Sept. 30 and the export surplus could be as high as 2.5 million tonnes, the group said.
The primary source of this article is Business Standard, New Delhi, India, on March 20, 2012.