Sugar exports may double in 2007-08 at around 30 lakh tons
The sugar exports of India, the world's second largest producer of the sweetener, is likely to double at around 30 lakh tons in the ongoing season as it enjoys freight advantage over Brazil for certain destinations.
By PTI |
NEW DELHI: The sugar exports of India, the world's second largest producer of the sweetener, is likely to double at around 30 lakh tons in the ongoing season as it enjoys freight advantage over Brazil for certain destinations.
"India is likely to double the sugar exports this year at around 30 lakh tons," K S Commodities analyst Rakesh Sharma told PTI.
Sharma said the exports of raw sugar is estimated at around 20 lakh tons and those of white sugar at 10 lakh tons.
The sugar exports stood at around 15 lakh tons in 2006-07 season ending September 2007, he added. According to Indian Sugar Mills Association (ISMA), the export was 17.28 lakh tons last year. Sugar year runs from October to September.
"India has got a freight advantage for certain destinations compared to Brazil," Sharma said.
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Some of the destinations where India enjoys freight advantage over Brazil are UAE and other Gulf countries, Egypt, China, Bangladesh, Indonesia and Africa, he added. "Picture looks quite positive on the Indian sugar export front. There is a good demand for Indian sugar," he noted.
On the production front, Sharma pegged the sugar output at around last year's level due to delay in crushing.
The sugar production in 2006-07 stood at 283 lakh tons against the domestic consumption of 190 lakh tons, as per the industry estimate. The opening stock at the start of the current sugar season stood at 114.74 lakh tons, ISMA said.
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In a bid to encourage overseas sale of the sweetener, the government is extending export subsidy of Rs 1,350 per ton to the mills located in coastal areas and Rs 1,450 per ton for those located elsewhere. Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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