Ram Gopal Yadav

Rabobank expects sugar output in the European Union o rise to 20.5 million metric tonne in 2017-18 from 16.7 million metric tonne produced in 2016-17. The increase be led by growth of more than 2 million metric tonne in output in both France and Germany, to 5.8 million metric tonne and 4.5 million metric tonne, respectively. USDA’s Europe Union bureau had estimated the sugar output in the region at 20.1 million metric tonne for 2017-18. The expectations of a rise in sugar production in EU can be attributed to the abolition of output quota in September. The last agricultural quota system in place, managing sugar production in the EU, was scrapped on Sep 30, after nearly 50 years.

Around 54,750 metric tonne of imported raw sugar is expected to arrive at Kakinada port, Andhra Pradesh on Oct 22 through Interocean Shipping agency. The government, earlier this month, had allowed import of 300,000 metric tonne raw sugar at a basic customs duty of 25% under the tariff rate quota for 60 days.

Prices of sugar in the key wholesale markets of the country were largely unchanged in a thin trade. While demand had improved earlier this month on account of festive buys ahead of Diwali, as of now, only day-to-day demand is seen in the markets keeping the prices stable. In the short term, prices are likely to remain in a range.