Mumbai: Sugar Factory survives the signing of a new export contract because the fall of global prices and strengthening rupees have expanded the gap between local and global levels, industrial officials told Reuters.
Lower shipping from sugar producers No.
2 The world can support global prices falling to the lowest in 5-1 / 2 months on Monday but also can request Indian factories to divert more sugar for ethanol production.
“At the current price level export is not feasible from India.
Mills get a much higher price in the local market,” said Ravi Gupta, Chair of the Export Committee in all Sugar (Aista) traders’ associations.
At the local market factory sell sugar at RS 32,000 to Rs 35,000 per ton compared to around RS 30,000 offered for overseas shipping, the dealer said.
Aggressive Mills sell sugar when international prices are around 20 cents per lb, said Rahil Shaikh, Managing Director of Meir Commodities India.
Stockpiles have dropped to a comfortable level and there is no pressure on the factory to sign a new offer, Shaikh said.
The factories have so far signed a contract to export 4 million tons of sugar in the marketing year 2021-22 which ended September 30, the dealer estimates.
The country exported a record of 7.2 million tons of sugar in 2020-21, taking advantage of government subsidies for foreign sales.
“The surplus has fallen due to last year’s export record and sustainable sugar transfer for ethanol,” said B.B.
Thombare, President of the West Indian sugar factory association.
New Delhi has raised prices where oil marketing companies will buy ethanol from sugar factories, making biofuel production profitable.
Most of the export sugar contract was signed by factories in the western state of Maharashtra and neighboring Karnataka, but the factory above producing Uttar Pradesh survived because of higher local prices, said Gupta Aista.
“Mills focuses on contract executors signed rather than singing new offers.
If international prices are getting closer to Indian prices, only the factory will advance,” said a Mumbai-based dealer with a global trade home, adding the country to export 6 million.
Tons in the current season.