Indian sugar mills have responded positively to the tenders invited by the Indian Sugar and General Industry Export Import Corporation (ISFIEIC) for export in order to reduce the bulging stock of sugar.
The export agency, which has targeted to procure 250,000 tonnes of sugar from millers, is reported to have purchased about 300,000 tonnes for delivery of sugar at various ports and Pakistan border.
Given the trend, industry sources estimate that agency’s procurement may exceed three lakh tonnes once the tenders for accepting sugar from mills will be closed on July 29. The government had allowed private sugar mills to undertake exports of up to 10 lakh tonnes of sugar and announced levy exemption on the exported quantity in an effort to bring down this year’s closing stock of sugar, which is estimated to soar to 10 million tones by October.
The export agency has also achieved a major trade breakthrough while procuring export contracts from Pakistan, which this year has suffered a setback in sugarcane production. In the last few days, Indian sugar mills have signed contract for export of 4,500 tonnes of sugar to Pakistan via the Wagah border. The contracts have been signed at ex-Pakistan price of $295-300 per tonne. Indian sugar mills also finalised contracts for exporting 25,000 tonnes of sugar to Bangladesh at ex-Bangladesh price of $ 275 per tonne, informed by market sources.
Market
Update
(Sugarcane)
