Abinash Verma, director-general of Indian Sugar Mills Association (ISMA), on Tuesday, said that global sugar prices have now inched up 19 cents and are likely to remain very bullish.
The sugar sector is in focus owing to a global shortage. The key factors leading to this big shortage are Brazil dealing with one of its worst droughts in 90 years, rising freight rates and also the recent frost.
Speaking in an interview with CNBC-TV18, Verma said, “The shortage in the global market will push up the global prices. And that is exactly what has happened. About 12-13 months back, the global raw sugar prices were hovering about 12-13 cents. Now it is hovering around 18.5-19 cents. Therefore, if this trend continues, and the deficit as estimated by the experts will be around 5 million tonne, we will not be surprised if the world prices even cross 20-20.5 cents in the next month or so. So, the global prices are going to be very bullish in the next 10 to 12 months.”
According to him, India will be able to export 6-7 million tonne of sugar. “Last year we did almost about 6 million tonne of exports, which was a record ever. This year we expect to do anywhere around 6.8 to 7 million tonne which is again another record for any season. If the next season is going to be like this, about 20 cents or so, we expect to do another USD 6 million next year,” said Verma.
The above news was originally posted on www.cnbctv18.com (Edited by : Dipika Ghosh)