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

Bulk Carrier Trends

Masterbulk, SeaSafe Ink Lifeboat Service Deal

Masterbulk Singapore has entered into a five-year global sole service supplier agreement with the Wallem Group’s lifeboat maintenance service company, SeaSafe Marine.

Stena Sonangol Suezmax Pool Rings in 10 Years

Stena Sonangol Suezmax Pool celebrates 10 years of collaboration and trading.   The 10th anniversary celebrations took place in London on May 20. Today on May 26 it is Houston’s turn and,

Avance VLGCs Fixed

Avance Gas said repairs of two very large gas carriers (VLGCs) are complete, allowing the delayed ships to get to work.   Both new build VLGCs recently dry-docked - Breeze (83,

Ports

SeaCURE BWTS Earns 2nd US Patent

Evoqua Water Technologies has been awarded a second United States patent on its technical solution for treating ballast water.  This latest patent was granted by

SITC Inks Deal with Qingdao Port

SITC International signed a strategic cooperation agreement with Qingdao Port International Co., Ltd. in Qingdao yesterday in order to further strengthen the strategic

Superyacht Marina Planned at San Juan, Puerto Rico

Puerto Rico Ports Authority issues RFP for Marina District. The project envisions a superyacht marina and dry dock maintenance, repair and overhaul facility

News

Mercury Diesel Engines for 16 New USCG Boats

Mercury Marine has entered an agreement with Metal Shark Aluminum Boats to power 16 U.S. Coast Guard (USCG) boats with Mercury diesel engines.   “Mercury Marine’s 2.

Roxtec Sees Rise in Cruise Ship Repair Work

Manchester cable safety seal manufacturer Roxtec has reported increased demand for its cruise ship cable and pipe seals.   The firm has seen a 67 percent rise

Tankers Switch to Digital Navigation

In July 2015 international regulation requires all tankers to be compliant with IMO rules for the use of ECDIS and ENCs. As many shipping companies start planning

Logistics

SITC Inks Deal with Qingdao Port

SITC International signed a strategic cooperation agreement with Qingdao Port International Co., Ltd. in Qingdao yesterday in order to further strengthen the strategic

Hapag-Lloyd to Enhance ADX to Bari, Italy

Effective June 27, 2015 Hapag-Lloyd will enhance its Adriatic Express Service (ADX) with a new call at Bari on the eastbound leg. Starting with the sailing of MV Warnow Beluga 147 EB,

Azevêdo Visits 3 S.E. Asian Countries

Director-General Roberto Azevêdo of World Trade Organization wrapped up a three country visit to Malaysia (19-20 May), the Philippines (21-24 May) and Singapore (25 May) today,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.1234 sec (8 req/sec)