Coimbatore, March 3
Sakthi Sugars is comfortably exporting 10,000-15000 tonnes of sugar every month.
The company still has an export obligation for 2.5 lakh tonnes (lt) and is hoping to export at least 1.5 lakh tonnes this year, its Managing Director, Mr M. Manickam, told
Business Line. "We have to export 2.5 lt by September 2007," he added.
The company has been exporting regularly to Bangladesh, Sri Lanka and Indonesia.
On rate, he conceded that the prices did shoot up some weeks back, but was not moving beyond $440/tonne at present. "There is resistance beyond a certain range. The spot market is, however, very volatile," Mr Manickam said. He said the optimal level would hover around $450.
On the domestic front, he said per kg of sugar was offered at Rs 18/19 now. Though this was lower than the global rate, he did not foresee the price moving northwards of Rs 20/kg.
Stating that the country's sugar production level was comfortable in 2005-06 sugar season, he said: "Official estimates show the opening stock at 45 lt. We will have 230 lt of sugar available against an estimated domestic consumption of 185 lt and exports accounting for 10 lt. The surplus 35 lt would be the carry forward stock for the 2006-07 season, when the production is estimated to touch 220 lt."
"There is no reason for the prices to flare up as enough sugar would be available in the market," Mr Manickam said.