Refineries along ports may change trade in favour of raw sugar, India may emerge key player

PUNE: A growing number of port-based refineries coming up in the Indian ocean region are all set to change the world sugar trade in favour of raw sugar. India is likely to emerge as the key player in the changed regime.

India, the world’s largest sugar consumer and the second largest sugar producer, already occupies an important place in world sugar trade. It exports in the years of excess sugar production and imports when the domestic production is not sufficient to meet the local demand.

According to Sucden’s presentation given at the Kingsman India Conference, due to the increasing refining capacity, raw sugar will compete with white sugar trade in future. The trade houses will also have to make strategic alliances with the sugar refiners. India’s location, close to sugar deficient countries from the Indian ocean region gives it added advantage in world trade.



Narendra Murkumbi, vicechairman and managing director, Shree Renuka Sugars, the largest sugar refiner in the country said, “There has been a steady growth of refining capacity in consuming regions as it gives more flexibility for the end consumers in terms of quality assurance, customisation, storage, packing options, etc.”

“As a result of this, the major exporting countries like Brazil and Australia have moved to primarily producing raw sugar which can be moved in bulk across long distances in a very cost-effective manner,” he added. Renuka Sugars is now setting up a port-based refinery in Sri Lanka.

Currently, there is 5.6 million tonne capacity of port-based refineries in the region, which is expected to go up to 10 million tonne in the next few years. Many sugar mills in India are exploring the option of setting up export-oriented sugar refineries.

Renuka Sugars already has two port-based refineries while Simbhaoli Sugars refinery at Kandla is expected to come on stream from December. Moving raw sugar in bulk has become cheaper due to low container freight costs.