Mumbai: Sugar producers in India, the world’s biggest user, may slow imports of the commodity for processing and sale locally after prices climbed to the highest in almost three years.
“Nobody wants to put his neck into a noose, not knowing what’s in store,” S.L. Jain, director general of the Indian Sugar Mills Association, said in a phone interview. “It is a scary situation for India when there’s a shortage worldwide.”
Raw sugar in New York surged to the highest since 26 July 2006, last week on speculation a decline in India’s output may worsen the first global supply deficit in three years.
Buying the commodity overseas at current prices is not profitable for Indian producers, the nation’s biggest mill said.
“Indians aren’t going to import unless they see some profit margin,” Rakesh Bhartia, chief executive officer of Bajaj Hindusthan Ltd, said in a phone interview. At 15 cents a pound (Rs7.50/0.45kg), importers can’t make money. bloomberg