Indian sugar mills strike 1.2 mil mt export deals

Sugar mills in India struck export deals of around 1.2 million mt for the new season that began from October, industry officials said Tuesday.

So far, mills have exported around 200,000 mt of raw sugar to various destinations.
Indian sugar consignments have been contracted by Dubai-based Al Khaleej Sugar refinery and traders in neighboring nations such as Bangladesh and Sri Lanka.

The destinations for Indian sugar exports also included East African nations like Somalia.

"Nearly one-third of the contracted volume is in white," said one of the officials.

He said the export deals have been carried on an FOB basis.

India, the world's second-biggest producer of sugar, has set a limit of 5 million mt for exports in the current season over October 2018-September 2019.

India's sugar marketing year runs from October to September.

The country sold 500,000 mt in the last 2017-2018 season due to an unviable international market.

Trade body Indian Sugar Mills Association forecast 31.5 million mt sugar production in 2018-2019, down 3.1% from the previous year.

Analysts attributed the expected decline from the previous year's record output of 32.5 million mt to this year's dry weather and pest attacks, despite increased plantings by cane growers.

On October 1, India's opening sugar stocks stood at 10.7 million mt.

India, the world's largest sugar consumer, needs around 26 million mt to meet domestic demand.

ISMA favored a mechanism by the government to ensure sugar mills fulfill an export quota.

"We have requested the government to put in place a system of compulsory exports with clear penalties if one does not fulfill one's export quota," said Gaurav Goel, ISMA president, at its 84th annual general meeting, Friday.