1.75 Lt Sugar Exports Sewn Up In Fortnight

The cargoes, half of which were contracted on Wednesday, were awarded in international bids by the Indian Sugar and General Industry Export Import Corporation (Isigieic), sources said.

The contracted cargoes would be shipped between October and December, mainly to Sri Lanka and Bangladesh. Some part of it will also be transported to Indonesia, they added.

Part of the cargoes were finalised at $276 per tonne on f.o.b. (free-on-board) basis, while the rest was contracted at prices $258 per tonne and upwards, the sources said.

Isigieic, the body set up by the domestic sugar industry to export sugar, had invited international bids following the government's decision in June this year to allow exports up to 10 lakh tonne.

India is expected to finish the current season (October-September) with an excess stock of 96.39 lakh tonne of sugar. During the season the availability of sugar, including a carry over stock of 67.23 lakh tonne from last year, is expected to be around 247.23 lakh tonne as against a total domestic demand of 150.84 lakh tonne.

India is also negotiating with Yemen to export sugar as some trading houses in the country had evinced interest in purchasing the commodity, the sources said.

The deals with Yemen are likely to be finalised at $280 per tonne on f.o.b. basis, which would still be about $5 lower than the London white sugar price, the sources added.

India had previously exported sugar for two consecutive years in 1995-96 and 1996-97, shipping a total of 11 lakh tonne. But, India consequently became a net importer of sugar due to low international prices, importing more than 20 lakh tonne.

Despite the government permitting export of 25,000 tonne of sugar in value added forms last year, no significant quantity was exported due to higher prices of Indian sugar compared to global prices.

Isigieic had floated domestic tenders for procuring 2.5 lakh tonne of sugar from millers as part of its plans to export 10 lakh tonne during 1999-2000 (October-September).

The government had allowed private sugar mills to undertake exports of up to 10 lakh tonne of sugar and given levy exemption on the exported quantity in an effort to bring down the huge stocks of the commodity in the domestic market.