TAD NewsDesk, New Delhi: Sugar Mills in crisis have started to export ahead of the announcement of policy by the Centre for the marketing season of 2020-21.
A cooperative mill operator from Maharashtra has written to the food ministry saying that it had already exported shipments and has asked for clarification on the future policy details.
The industry has started its sugarcane crushing expeditions for the year 2020-21. Along with price movements in the global market, it is keenly waiting for clarity on sugar export policy details.
In the letter, the cooperative mill had written,
“We have contracted for export of 2,500 tonnes of sugar in 2020-21 under OGL (open general licence) at 30,000/tonne ex-factory.”
It wanted to know whether the supply of OGL sugar for export would be outside the monthly release order (monthly quota to sell sugar in the domestic market).
The letter also added the query if the policy would be applicable on exports done before October 1.
Rahil Shaikh of MEIR Commodities said,
“There is demand from Afghanistan and Horn of Africa for January ‘21 shipment and for a small tonnage from Southeast Asia. Therefore, such prices are possible for white sugar”.
Mr Shaikh added,
“Physical tightness may push the world market to close to 17 cents per pound to push Indian sugar out, especially in view of suspense of policy.”
While many traders are expressing doubt over the enormously high prices, in some places the possibility could be seen as has been claimed by Mr Shaikh. Sweetener this fiscal year had had a surplus and there is a huge amount of sugar to export before the next supply settles in the country.
Source: The Economic Times
