Financial Daily from THE HINDU group of publications
Monday, Dec 08, 2003
Financial Daily from THE HINDU group of publications Monday, Dec 08, 2003 |
|
|
|
|
|
Agri-Biz & Commodities
-
Sugar Industry & Economy - Exports & Imports Sugar exports losing momentum M.R. Subramani
Chennai , Dec. 7 SUGAR exports from the country have slowed down on falling global prices and higher domestic prices, industry experts have said. "Sugar exports have been reduced to a trickle. In fact, exporters are not interested because international prices are low and domestic prices are firm," Mr Vinay Kumar, Managing Director, National Federation of Sugar Cooperative Factories Ltd, told Business Line. "Hardly any export is taking place as whatever incentive the Government provides for sugar shipment has been wiped away by the rising rupee and dipping dollar," Mr S.L. Jain, Secretary-General, Indian Sugar Mills Association (ISMA), said. Currently, global sugar prices are ruling around $180 a tonne. On the other hand, Indian exporters are quoting around $200 a tonne. Domestic sugar prices are ruling at around Rs 13,300-13,990 a tonne, which works out to about $295-305. Crushing mills, which export sugar, get an internal transport subsidy of $10-12 that takes care of moving the consignment from the factory to the port. Besides, they get a flat Rs 350 a tonne ocean freight subsidy. "If you look at the current prices for sugar export, they are not attractive. Two years ago, the rupee was at 49.05 to the dollar and now it is around 45.50," Mr Jain said. "Exports have reached a saturation point. Still, some exports are taking place to some place or the other," Mr Kumar said. This year, the sugar industry had taken advantage of Bangladesh opening up its sugar market to imports by private trade. It helped Indian exporters to ship over two lakh tonnes to Dhaka. During the 2002-03 sugar year (October-September), exports totalled 17.63 lakh tonnes against 10.8 lakh tonnes the previous year. "The Bangladesh market is now facing sugar glut. Therefore, exports to that country have come to a halt," Mr Kumar said. "Small consignments are going to Egypt, Sri Lanka, Indonesia and Malaysia," he said. The global market is caught in a bearish mood since stocks are mounting and demand is waning. "Brazil and Thailand are flooding the global market," trade analysts say. "If at all some exports are taking place, it is because the mills want to cut down their inventories," they say. Sugar stocks carried over to the current crop year are estimated at over 100 lakh tonnes. A projected fall in production is now expected to bring in a natural correction in the domestic as well as global market.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|