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July 5, 2001
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Money > Reuters > Report July 5, 2001 |
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India's sugar export target seen out of reachIndia is unlikely to meet its sugar export target of one million tonnes in 2000-01 because high prices are discouraging buyers, millers and traders said on Thursday. India, one of Asia's major sugar producers, began exporting sugar in July to cut bulging stocks of 12 million tonnes. But sales have been slow with the situation likely to worsen as India heads for another bumper sugar output this year. "There's no action on the sugar export front. Very few shipments are taking place because of high prices," said Prakash Naiknaware, managing director of the Maharashtra Federation of Co-operative Sugar Factories. Exporters said they were unable to clinch deals despite quoting sugar at $20 to $25 below the international price of around $256 a tonne due to lack of interest in the market. Since July, mills and traders have contracted to export around 800,000 tonnes of sugar and physical shipments of about 500,000 tonnes have taken place. India has been mainly exporting to Sri Lanka, Pakistan, Bangladesh, Indonesia and East Africa. RAINS HIT SHIPMENTS Millers said a slowdown in exports was also due to monsoon rains sweeping the subcontinent. "Right now only 30,000 tonnes a month are moving out but after the rains we should be doing much more," one trader said in Bombay. They said mills in southern India were more active in exporting sugar due to proximity to destinations such as Sri Lanka and Bangladesh. "In the south most of the good stock has been exhausted. Now mills in other regions should get active," M Manickam, managing director of Shakti Sugar Mills Ltd said. Millers expected export demand to pick up when the monsoon season is over and sugar production restarts in October. But this may not be enough to dent its sugar stocks as India is expected this year to equal the record sugar output of 18.2 million tonnes produced in 1999-2000 (October-September). Exporters said fresh export demand is expected in October from the Middle East, Vietnam, Somalia and Sudan. "Right now everyone's looking at Brazilian sugar but in October when our crop comes in the market, buyers will focus attention on us," Gagan Gulati, a general manager of Adani Exports Ltd said.
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