Sugar Export New Target of 6 MT; New Trade Enquiries from China Despite Border Disputes
Last year the government exported 3.8 million tones out of a target of 5 million tonnes; despite that, this year the goal was set at 6 million tonnes. The companies are getting trade enquiries from China and they are optimistic that there might be short term delays, but still, China was a significant market for India in the long term. So far, India has exported around 101,000 tonnes to China in the current season.
Source: ET | 09 July, 2020 | 11:01 AM
The All India Sugar Trade Association President Mr Praful Vithalani stated that they were getting enquiries from China and the traders are optimistic that there might be a short-term delay in business dealings, but in the long term exporters see China as a major market for Indian sugar.
An official of a global trading company based out of Mumbai said considering the prevailing price of sugar in China at $730 a tonne, there was a good opportunity of Indian exporters.
Sugar traders are also eyeing export deals with China, which they say are viable despite customs duty of 50%, but are afraid that the border tensions between India and China may cast a shadow on the trade.
“We can export 300,000 tonnes of sugar to China in the next two to three months,” said Praful Vithalani, chairman, All India Sugar Trade Association. “Trade enquiries have started coming, but companies have yet to sign deals. Everyone is cautious to make deals and will wait for the situation to improve,” he said.
India will be competing with Brazil, Cuba and Thailand to meet China’s demand of four million tonne sugar, exporters said.
“We are skeptical on whether to export at this stage,” the person said on condition of anonymity.
At the same time; the sugar industry can leverage the situation of slowdown in Brazil and Sugar cane diversion. According to Mr Prakash Naiknavare, the MD of NFCSF, the absence of labour is delaying Brazil’s sugar exports. Thus, giving India an additional 10-15 days for exports.
The lockdown has slowed down the Indian sugar industry; but it is a good sign that exports are slowly picking up.