‘Loss of sugar exports to Afghanistan, Lanka to be offset’ by admin- Friday, September 17th, 2021 08:12:08 AM
Indian sugar export will benefit from other international locations on lower Brazil output, say exporters
Indian exporters anticipate higher demand for sugar from different buyers to offset the losses in Afghanistan and Sri Lanka, due to the present day political and financial scenario in those markets. Sugar exports have stopped to Afghanistan and Sri Lanka, taken into consideration an assured markets as they account for close to twenty in keeping with cent of the commodity’s exports.
Afghanistan is the second one biggest buyer of Indian sugar in the course of the contemporary season ending this month, accounting for about 13 according to cent of the document 70 lakh tonnes shipped, even as exports to Sri Lanka are predicted to be 5-6 lakh tonnes.
Sugar stakeholders count on better demand coming in from other countries over deliver issues from Brazil, the biggest manufacturer.
‘Not a difficulty’
Developments in Afghanistan and Sri Lankan markets aren’t a difficulty, said Rahil Shaikh, Managing Director, MEIR Commodities-India.
“I see them coming back subsequently to shop for,” he stated, adding that call for from different markets will boom the subsequent season (October 2021-September 2022).
“Brazilian manufacturing is unsure as of now. I consider lot of Brazilian agencies are transferring their purchases into India and that’s what I see coming,” said Adhir Jha, Managing Director and CEO, Indian Sugar Exim Corporation.“Demand is not going to be a hassle. If we begin shipments from October 1, we will have brisk exports by March,” Jha said.
Also study: Sweet information: Indian sugar mills sign forward contracts to export 12 lakh tonnes subsequent season
While exports are not occurring to Afghanistan, the enquiries have commenced coming in, said Abinash Verma, Director-General, Indian Sugar Mills Association. Foreign change woes, in particular in regards to US greenbacks, in Sri Lanka has affected shipments.
“We expect that call for will come back from Afghanistan, but not in the equal amount,” Jha said.
Indian exporters have been shipping sugar to Afghanistan on free-on-board basis, insisting on strengthen payments.
However, industry assets said the exporters have confronted issues in Sri Lanka, in which payments were caught for a few players. Moreover, banks are hesitant to extend credit score line for exporters transport to Sri Lanka. “It is tough to quantify the stuck bills in Sri Lanka,” Jha said.
Prakash Naiknavare, Managing Director, National Federation of Co-operative Sugar Factories, said the loss of Afghanistan market may have some effect because it became an confident market for 1,000,000 tonnes of white sugar.
Many markets open
“Having said that it isn’t always a big blow for us because the worldwide possibility for Indian sugar to diverse destinations could be very encouraging. Since Brazilian production has long gone and Thailand manufacturing but to trap up, the locations in which these two nations were to supply are open for us like Indonesia, China, Bangladesh, Korea, Malaysia, Middle East. All these markets are watching for Indian sugar,” he said.
Abhijit Ghorpade, a dealer in Kolhapur said the subsequent two years present a good opportunity for the Indian sugar and that the call for for raws would be on the higher aspect.