TEHRAN (Iran News) – Sugar exports from India have gained momentum due to strong demand from Iran and Indonesia as the rupee slid to a record low, increasing exporters’ margins from overseas sales, five industry officials told Reuters.
Higher exports from India, the world’s biggest producer of sugar, could put pressure on global prices and limit shipments from rivals such as Brazil and Thailand.
“In the last few days, Iran and Indonesia were buying for May and June shipments,” Rahil Shaikh, managing director of trading company MEIR Commodities India, told Reuters.
Indian sugar mills have already dispatched 3.7 million tons out of around 4.1 million tons of contracts signed for exports in the 2019/20 marketing year ending on Sept. 30, said Shaikh and two other dealers with global trading companies.
Traders have shipped 719,922 tons to Iran so far in the season, while Indonesia bought a record 324,112 tons, according to data released by All India Sugar Trade Association (AISTA) on Thursday.
Indonesia has increased imports of Indian sugar after New Delhi boosted purchases of Indonesian palm oil amid a spat with rival supplier Malaysia, dealers said.
Indonesia and Malaysia account for 85 percent of the world’s palm oil output while India is the biggest buyer of the edible oil.
Large-scale Indian exports to Indonesia were made possible after Jakarta changed purity regulations for sugar imports, said Shaikh.
Malaysia has also stepped up purchases since February and has so far bought a record 327,292 tons of sugar, according to data compiled by AISTA.
Indonesian buying has now slowed but Iran is still making purchases, said a Mumbai-based dealer with the global trading firm, who is not authorized to speak to the media.
India’s total sugar exports in the current marketing year could rise above five million tons, up from earlier trade estimates of 4.5 million tons, the dealer said.
Some industry officials, including Praful Vithalani, president of AISTA, expect mills will able to achieve six million-ton target set by New Delhi for the current marketing year.
- source : Iran Daily, Irannews
