Slowdown in sugar exports a major headache for inventory-saddled industry

While a stronger rupee and lower crude price have hardened the overseas market, the decline in sugar prices from the peak has made exporting the commodity economically unviable

There has been a marginal increase in overseas shipments of sugar in December and all indicators suggest market scenario is not favourable for exports, with no improvement seen in the near future. This is coming at a time when there is a pressure on mills to export more to reduce domestic inventories.

Total sugar dispatches till January 5 from the mills for exports stood at 726,000 tonnes, of which 383,000 tonnes were actually shipped, while the rest is still in the pipeline, according to data sources from Dr Amin Controllers, a US-based supervisory and collateral agency that tracks several commodities.