Raw sugar exports rise to 2 million tonnes

PUNE: Rising international prices for raw sugar and a recent budget announcement by the Maharashtra government is seen pushing up exports of the commodity to 2 million tonnes this year.

In its budget announcement on Friday, the Maharashtra government proposed that only those sugar mills that export sugar equal to their mandatory quota will be eligible for exemption on purchase tax.

At 3% of the fair and remunerative price (FRP), mills have to pay Rs 80-100/tonne as purchase tax. The announcement saw ex-mill sugar prices increase by about 2.5% last week. “The export prices are attractive. Already a few mills have signed export deals this week and we expect more contracts to happen in March,” said Sanjiv Babar, managing director of Maharashtra Cooperative Sugar Mills Association.

“As Brazil enters the market in April, mills will like to export now.” Thanks to demand for white sugar in the international market, mainly from Myanmar, exporters have started offering a higher rate of Rs 2,650-2,700/quintal to sugar mills.