INSUBCONTINENT EXCLUSIVE:
Sugar makers in India are signing deals with traders and exporters on optimism that the government will soon announce overseas sales quotas
far contracted to export about 1.2 million tons and aim to ship as much as 8 million tons in the 2022-23 year, according to Rahil Shaikh,
benchmark futures amid concerns supplies will tighten, mainly in top exporter Brazil
Rain in the Center-South region of the South American nation, the main growing area, has slowed the pace of cane crushing potentially,
boosting prices.Exporters are offering Indian mills about 35 rupees (43 cents) per kilogram for low quality white sugar compared with the
domestic price of 33 rupees, while raw sugar is attracting a price of 33.5 rupees from international buyers, Shaikh said
The refined variety is fetching 38.5 rupees from overseas buyers compared with a local market rate of 36 rupees, he said.
Among
destinations for raw sugar are Indonesia and Bangladesh, while low quality white sugar can be sold to the Horn of Africa region, Sri Lanka
and Afghanistan for direct consumption, with good demand now, Shaikh said
The refined variety can be sold to Sudan, Somalia and the Middle East, he said.
Domestic sugar production is forecast at 35.5 million tons
this year, while consumption is seen at 27.5 million, according to the Indian Sugar Mills Association
government should not be worried about domestic supplies
