Govt releases 15 lakh tonnes sugar for exports

Govt releases 15 lakh tonnes sugar for exports
PTI
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First Published: Wed, May 09 2007. 06 54 PM IST
Updated: Wed, May 09 2007. 06 54 PM IST
New Delhi: The government has allowed exports of 15 lakh tonnes of sugar since the ban on overseas sales of the sweetener was lifted in January this year.
India, the world’s second-largest producer after Brazil, is expected to produce around 265 lakh tonnes of sugar in the current season ending September 2007, against 192.6 lakh tonnes the previous year, according to industry estimates.
The US Department of Agriculture has also pegged sugar output in India in the current season at over 250 lakh tonne.
“Although global prices of sugar hover around $315-318 a tonne, overseas buyers are offering $275 to Indian exporters,” Rakesh Sharma of K S Commodities said.
The main reason for the low price is that Indian white sugar have 100-150 ICUMSA while internationally it is 45 ICUMSA, he said.
An ICUMSA (International Commission for Uniform Method of Sugar Analysis) rating is an international unit for expressing the purity of sugar — less the ICUMSA, better is the quality.
Meanwhile, sugar mills have crushed 218 lakh tonnes of sugar till the end of March this year. While the crushing figure during April is yet be released, trade sources expect it will be 10-12 lakh tonnes for the month.
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First Published: Wed, May 09 2007. 06 54 PM IST
More Topics: Money Matters | Commodities |