• SENSEX
    NIFTY 50
powered by
VIDEOS
Agriculture

Expect Indian sugar export to pick up for the next 4-5 months, says ISMA

Updated : December 02, 2019 05:16 PM IST

Sugar prices have come under pressure domestically and this after the December quota has seen an increase by the government. The increase in sugar quota is to provide liquidity to the on-going crushing season so that the mills can pay up to the farmers.

However, the export side of the business seems to be in for an easier time in the coming months. Abinash Verma, Director General, ISMA, told CNBC-TV18, “We expect that the world prices should move up from the later part of November. Now that Brazilian production is over, the world is looking at Indian sugar and therefore the world prices have to move to such a level to attract Indian sugar into the international market. I would believe that Indian has an opportunity to export sugar from hereon, from December to April. So we have almost 4-5 months period where the world will find Indian sugar attractive."

The sugar output number that has come from the government is 27.3 million tonne for 2019-2020. Commenting on this, Verna said, “As far as the government numbers are concerned 27.3 lakh tonne, I don’t think they have accounted for the diversion of sugarcane juice and B-heavy molasses into ethanol and the consequent reduction in the sugar production. Our estimation of production was 26.85 lakh tonne; 26.8 lakh tonne."

Verma does not make much of the talk about pressure on sugar prices, He said, “If you really see the total consumption of the sugar in the country, for 12 months would be about 26 million tonne and if you simply divide it by 12 it should come to about 21-22.5 lakh tonne every month. So 21.5 lakh tonne of the sale in December is certainly not going to put any pressure on the prices.”
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV