India Ups Sugar Exports to Iran, Asia; Takes Share from Brazil

MarineLink.com
Wednesday, March 12, 2014

By David Brough and Rajendra Jadhav, Reuters

Indian mills are exporting more raw sugar to Iran and Asian markets, aided by a production incentives package and recovering world prices, seizing market share from top exporter Brazil.

"There is a strong flow of physical trade from India, helped by the rally in world sugar prices, export incentives and rupee clearing," said Jonathan Kingsman, head of agriculture at data provider Platts.

Cash-strapped Indian mills, which have struggled to pay cane farmers due to weak global sugar prices, received a boost last month when authorities approved an incentives package amounting to 3,300 rupees per tonne to stimulate export sales from substantial stocks.

A senior European trade source estimated Indian mills sold some 315,000 tonnes of raw sugar to Iran from December to March, and that a further 200,000 tonnes of Indian raw sugar had been sold to local traders in Iran.

According to Indian industry estimates, mills could sell an additional 250,000 tonnes to Iran this season.

Their exports have been primarily to Iran, with the further financial incentive of a so-called rupee clearing mechanism amounting to some $15-30 per tonne premium to Indian mills. The mechanism uses funds from rupee accounts set up with funds from sales of oil by sanctions-hit Iran to India.

Kingsman said Bangladesh and Malaysia were among other markets where India had made sales at the expense of Brazil.

ICE raw sugar futures rose to a four-month peak earlier this month due to concerns that drought in Brazil could hit output, making exports more attractive for Indian mills.

MALAYSIA, INDONESIA SALES

Naim Beydoun of Swiss Sugar Brokers said he believed Indian raw sugar sales to Malaysia and Indonesia were possible in coming months if the product was competitive in quality terms.

He also said offers of Indian raw sugar on the international market would erode physical business from top exporter Brazil.

"If you take the Indian subsidies, the availability of Thai sugar, and the sugar price going up, this is not conducive to Brazilian cash prices being firm," Beydoun said.

Brazilian prompt high quality raw sugar was offered at a discount of 25 to 30 points to May futures on ICE this week, signalling subdued cash demand.

India, the world's top sugar consumer and number two producer after Brazil, can swing from net exporter to importer. When India exports the sweetener it typically sells low quality whites to regional markets.

India exported 1.2 million tonnes of sugar from October to February, including 500,000 tonnes of raws, according to the Indian Sugar Mills Association.

(Reporting by David Brough and Rajendra Jadhav; Editing by Nigel Hunt and David Evans)

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Houston Ship Channel Reopens After Ships Collide

The Houston Ship Channel has reopened after a collision between a container ship and a chemical tanker, according to a spokesman with the United States Coast Guard.

Port of San Pedro Seeks to Fund Upgrades with European Roadshow

Ivory Coast's second largest port of San Pedro will hold a roadshow in France and Britain next month as it seeks to raise 180 billion CFA francs ($300 million) to fund upgrades,

Navis to Deploy Its N4 TOS to France's Largest Container Terminal

Navis has reached an agreement to deploy its N4 terminal operating system (TOS) to the largest container terminal in France, the company announced today.   The license agreement was with EUROFOS,

News

EC Okays Maritime Fisheries fund

European Commission has approved Malta’s Operational Program European Maritime Fisheries Fund (EMFF) for the 2014-2020 financial periods, announced Parliamentary

Houston Ship Channel Reopens After Ships Collide

The Houston Ship Channel has reopened after a collision between a container ship and a chemical tanker, according to a spokesman with the United States Coast Guard.

Martian Ocean Held More Water than the Arctic

The National Aeronautics and Space Administration say there was once more water on the planet Mars than in the Arctic Ocean on Earth.   In a new study in the journal Science,

Logistics

Are Megaships Game Changers?

Bragging rights for the world’s largest container ship have changed hands four times in as many months and keep on shifting again, says a report in the Bloomberg.

Navis to Deploy Its N4 TOS to France's Largest Container Terminal

Navis has reached an agreement to deploy its N4 terminal operating system (TOS) to the largest container terminal in France, the company announced today.   The license agreement was with EUROFOS,

Vancouver Port Operations Resume Atfer Container Fire

Port Metro Vancouver said on Thursday that operations had resumed at most port facilities shut down by a shipping container fire the day before, but that its Centerm

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Offshore Oil Pipelines Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4402 sec (2 req/sec)