News Sugar
India wants to monetize higher sugar price
The Indian government is targeting sugar exports of 6 to 7 million tons for the 2021/2022 season. This season starts on October 1. The government is calling on producers to take advantage of the current price level on the world market.
India expects to be able to phase out export subsidies for the coming season, a top government official told Reuters. "Even without the subsidy, India could export 6 million tons of sugar," said BB Thombare, president of the West Indian Sugar Mills Association. "The price should remain stable above USD 0,20 per pound (about € 375 per ton)".
Cash at current price
The Indian sugar factories must try to take maximum advantage of the high prices on the world market, the government has informed the producers in a letter. After earlier reports about the phasing out of export subsidies, the stock prices of the sugar producers fell by about 5%. Confidence is now slowly returning and some traders have already signed contracts for the overseas export of 725.000 tons of raw and 75.000 tons of refined sugar a few months before the harvest.
The export of the largest sugar-producing country after Brazil can bring peace to the sugar market. Harvest expectations for Brazil are being revised downwards monthly and it seems that the supply of sugar between November and March is scarce. That gap can be filled by India, as the country is well stocked. That gives countries in Africa and Asia the opportunity to replenish tight stocks, according to experts.
Jurphaas Lugtenburg
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