Sugar exports likely to be around 8 lakh tonne

With only six months left for the sugar season to end, the country would be able to export only eight lakh tonne of the sweetener in 2006-07 mainly due to low global prices and capacity at ports, analysts said.

"Seeing the export viability at the current global price and feasibility at ports to handle shipment, India will be able to export about eight lakh tonne of sugar this year," commodities brokerage house K S Commodities analyst Rakesh Sharma said.

The shipment of sugar could be around two lakh tonne till date though government has issued release orders of a little over eight lakh tonne for export under both advance and open general licences, he added.

It is estimated that about 15 lakh tonne of sugar would get exported during 2006-07 season though the Centre has not fixed any target for export, Agriculture and Food Minister Sharad Pawar told Parliament on March 9.

"The export till March-end will be around 2.5 lakh tonne and it is not possible to export the remaining 12.5 lakh tonne in six months during April-September," Sharma said.

He said the buyers are showing interest at $300-305 per tonne while the sellers are asking for $310-315 per tonne.

On the feasibility at ports, Sharma said the Mumbai port, which handles the maximum volume of the country's sugar export, is equipped to manage a maximum of 75,000 tonne in a month.