Indian mills sign deals for exporting 1 lakh quintal sugar

PUNE: Indian mills have signed deals in the past ten days for exporting about 1 lakh quintal sugar, seeking to make the most of the increase in international prices before crushing begins in Brazil and has a possible adverse impact on prices.

“With exporters offering a higher rate of Rs 26-26.50 per kg, mills are now interested in exporting sugar.

They have signed deals for exporting about 1 lakh quintal sugar and it will be followed up with a few more deals,” said Sanjiv Babar, managing director, Maharashtra Cooperative Sugar Factories Federation. Since the Central government will pay Rs 45 per tonne as subsidy on sugarcane payment, the mills will effectively get a subsidy of about Rs 300 per quintal. With domestic market rates ruling at Rs 30 per kg, returns from export are on a par with domestic market prices.

JR Pawar, managing director of Vridhdheshar SSK in Ahmednagar district said, “We signed export deal for 26,000 quintals at Rs 2,625 per quintal ex-factory on March 3.”