The Indian Sugar Mills Association (ISMA) on Wednesday expects international sugar prices to move up from November.
In an interview to CNBC-TV18, Abinash Verma, director-general, said, "This is the festival month. From hereon for the next couple of months, we see a big demand from the market as there is this extra sweetness that we want in our festivals."
"If I compare this month, the government has given a quota in September 2019 of about 19 lakh tonne as compared to 21.6 lakh tonne of quota in September 2018. So, as compared to last year the quota given by the government is almost about 2.5 lakh tonne less. So, the supply has been curtailed and the demand is still there and is very good at this time of the season. Due to less availability of sugar in the market, the prices were expected to move up and that has happened," he said.
"The current lows in the global sugar prices are due to the Brazilian Real. The Brazilian currency has dipped in the last one month quite substantially from almost about 3.7 reals to a dollar, it went down to 4.2 Reals and it is hovering around 4.1 Reals, so that gives an opportunity to the Brazilian's to export sugar into the international market at a lower price," Verma added.