India sugar exports under pressure on global surplus
Thursday, 23 February 2012 | 14:52
India's sugar exports for 2011-12 is likely to be under pressure on global surplus production of around 6-8 million tons, according to the latest report of Rabo Bank.
India is likely to produce around 26 million tons of sugar for 2011-12 and consumption is expected to be around 22 million tons.
And on the back of the higher production in the country, the governemnt has allowed 2 million tons but the country is presently facing difficulties in exporting the commodity due to higher production in other major growing areas.
Apart from India, other major growing areas include Brazil, Thailand and some others.
Brazil’s sugarcane production is expected to rise to 520 mt in 2012-13.
Meanwhile, According to Swiss Kingsman SA, the global sugar prodution is expected to be around 176 million tons and consumption is expected to be around 170.6 million tons.
Sugar for March delivery, in Inter-Continental Exchange (ICE), traded at 25.35cents per lb and in India's National Commodity and Derivative Exchange (NCDEX), the commodity traded at Rs 2855 per ton on 22st February.
Source: Commodity Online
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