The Hindu Business Line : 25,000 t raw sugar shipment to arrive next week

The first-ever raw sugar consignment following the recent relaxation in import rules by the Centre is scheduled to arrive in the country within the next 5-6 days.

According to sources, a vessel of 25,000 tonnes booked by the K.K. Birla Group of Sugar Companies is expected to dock at Kandla port next week. The raw sugar of Brazil origin has been contracted at $250-255 a tonne, cost & freight, with the supplier being the Geneva-based trader, Vitol Sugar SA.

“It is easily the cheapest import deal to have booked, working out lesser than even the $ 260-270 a tonne rates contracted by the refineries of Shree Renuka Sugars and EID Parry-Cargill refineries at Haldia and Kakinada, respectively,” the sources said.

Below current rates

It is also way below what sugar mills would be importing at current rates, with the March raw sugar (No. 11) contract at the InterContinental Exchange now trading at 13.12 cents a pound or $289 a tonne. The latter is exclusive of freight from Brazil, which costs $30-35 a tonne.

The K.K. Birla Group includes Upper Ganges Sugar & Industries, the Oudh Sugar Mills and Govind Sugar Mills. “Most of the raw sugar is likely to be used at the Haragon unit of Oudh Sugar and the Seohara factory of Upper Ganges. The raw sugar can be processed along with cane juice during the current season itself, as there is still a month or so of crushing left. These units also have sufficient surplus baggase and paddy husk to process the additional raw sugar,” the sources added.

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