Two Indian mills surrender 11,555 MT of reallocated raw sugar import quota.

Deccan Sugar and Shree Ambika Sugars have surrendered the additional quota to import 11,555 tn of raw sugar allocated to them by the Directorate General of Foreign Trade. The foreign trade body allocated an additional quota of 2,958 tn to Deccan Sugar, and 8,597 tn to Shree Ambika Sugars. Subsequent to the initial allocation of quota for import of sugar on Sep 13, nine applicants had surrendered their allotted quotas amounting to 92,660 tn. The mills surrendered the quota as the quantity allocated to them was very small and thus import would be unviable. Our agreement for the initially allocated quantity has already happened and the shipment is arriving on Oct 7. Deccan Sugar had applied for 25,000 tn raw sugar, while three refining units of Shree Ambika Sugars had requested for a total quota of 135,165 tn raw sugar. The Directorate General of Foreign Trade, however, initially allocated a quota of 5,942 tn raw sugar to Deccan Sugar, and 17,269 tn raw sugar to the refining units of Shree Ambika Sugars.

ISMA seeks inclusion of sugar in FTAs with neighbouring countries.

India Sugar Mills Association has, in a letter to the commerce ministry, sought inclusion of sugar in bilateral free-trade agreements with neighbouring countries as India would need to export the commodity from 2018-19 (Oct-Sep) onwards on expectations of higher output. The sugar body expects 2018-19 and 2019-20 to be surplus sugar years, as a result of which domestic prices of the sweetener may crash. Low sugar prices may also lead to the problem of higher cane arrears in the country. Commerce ministry had asked for our opinion on how to increase sugar exports as they are framing an agriculture exports policy. The sugar body has suggested the commerce ministry to include sugar in the bilateral free-trade agreement between India and Bangladesh. Bangladesh should also “be convinced to give preferential import duty for India sugar.

India govt OKs 10,000 tn sugar export in preferential quota to EU 2017-18.

Government allowed export of 10,000 tn white sugar to the European Union under preferential quota for the new marketing year starting October. Under the quota, the export of sugar to the EU is allowed at zero duty. Sugar exports from India through the normal channel attract a duty of 20%. The government has pegged India’s sugar output in the new season starting October at 24.5-25.0 mln tn, higher than 20.17 mln tn produced a year ago.

Sugar futures higher following 1 MMT delivery.

Sugar futures rise following a 1 MMT sugar delivery against the October contract. Raw sugar for March up 1.9% at 14.36 cents a pound on the ICE Futures U.S. exchange. Bulky deliveries such as this occur when the physical market is uninteresting enough to make the deliverer use the exchange as a last resource.

India Sugar down in north India on low demand; flat in Maharashtra.

Prices of sugar fell in the key wholesale markets of north India due to subdued demand and selling pressure on mills to clear stocks before the upcoming crushing season. Expectations of a rise in production this season has also dampened the sentiment for the sweetener and is keeping prices subdued. Mills are quoting lower prices to trigger demand as they have to clear stocks before the crushing season starts at the end of October. In other key wholesale markets of Maharashtra, sugar prices remained unchanged amid thin trade.

ISMA may transport molasses from UP to Tamil Nadu.

Sugar industry body ISMA is considering transporting excess molasses in the mills of Uttar Pradesh to those in Tamil Nadu, where a drought-hit sugarcane crop is threatening to keep sugar mills and their ancillary units idle and deepen losses. Indian Sugar Mills Association (ISMA) is deliberating on the feasibility of transporting the excess molasses to millers in Tamil Nadu so that it can be processed to make ethanol and other by-products, thereby helping them cut losses.

Mills see Karnataka sugar output up at 2.4 million tonne in year to Sep 2018.

Karnataka, where sugar output fell to an eight-year low of 2.05 million tonne this marketing year, have to wait long to return to its normal production level of about 5 million tonne. While production of sugar is seen rising in the southern state in 2017-18 (Oct-Sep), the rise would be marginal. Sugar output in the state during 2017-18 is seen rising to around 2.4 million tonne helped by “good” monsoon rains this year following two successive years of drought.

Sugar price up in Mumbai on high demand, down in Delhi.

Prices of sugar rose in the key wholesale markets of Mumbai due to an increase in demand as Maharashtra markets opened after a three-day holiday. Prices of the sweetener, however, fell in the key wholesale markets of Delhi as demand was hit due to police blockades set up in Punjab and Haryana to quell unrest ahead of the announcement of the sentence against self-styled godman Gurmeet Ram Rahim.

India Sugar down in spot markets due to selling pressure on mills.

Prices of sugar fell in the key wholesale markets of the country due to increased selling pressure on mills. Prices of the commodity have declined due to increased selling pressure on mills as the government has imposed stockholding limits on them. The government has imposed stockholding limits on sugar mills for September and October to keep prices in check ahead of major festivals.

Govt reallocates quota for import of 92,660 tonne raw sugar at 25% duty.

The Directorate General of Foreign Trade has reallocated quota for the import of 92,660 tonne raw sugar at 25% duty. Subsequent to the allocation of quota for import of sugar on Sep 13, nine applicants had surrendered their allocated quota. Some sugar mills surrendered their quota as the quantity allocated to them was very low and imports would have be unviable. The Directorate General of Foreign Trade had received a total of 35 applications for import of raw sugar, much higher than anticipated.

ICE sugar at 1-mo low on good harvest in Brazil.

Futures contracts of sugar 11 fell to a one-month low of 13.11 cents a pound on the ICE due to a higher-than-expected rise in the output of sugar in the Centre-South region of Brazil. The October contract of sugar 11 ended at 13.21 cents a pound, down 3.9%, while the most active March futures closed 3.1% lower at 13.91 cents a pound.

Centre-South Brazil Sep 1-15 sugar output 3.1 million tonne, up 29.2% YoY.

Mills in Brazil’s Centre-South region produced 3.13 million tonne of sugar in the first fortnight of September, up 29.2% from 2.42 million tonne produced a year ago. Centre-South Brazil accounts for over 90% of the country’s total sugar output. Mills in the region crushed 45.44 million tonne of cane during Sep 1-15, up 20% on year. During Apr 1-Sep 15, mills crushed 427 million tonne of cane, down 1.6% on year. During the same period, mills produced 26.39 million tonne sugar, up 5.9% on year. Of the total cane crushed, around 48.4% was used for sugar production, while 51.6% was used to make ethanol. Mills in the region are likely to produce 35.2 million tonne of sugar this season, marginally lower than 35.6 million tonne produced in 2016-17 (Apr-Mar).

Sugarcane price fixation sparks row between farmers, millers in Uttar Pradesh.

With less than a month remaining for sugarcane crushing to begin in the new season, it’s time for the annual ritual of confrontation between farmers and private millers in Uttar Pradesh on the issue of price to be paid to cane growers. As every year, both the stakeholders hold diametrically opposite views on what should be the “right price” that the farmer should get for his produce. At a meeting of the cane price fixation committee under the chairmanship of Uttar Pradesh chief secretary, the farmers demanded Rs 375-400/quintal while the millers categorically stated that they are in no condition to pay anything beyond last year’s State Advised Price (SAP) of Rs 305 per quintal.

Sugar Prices fall on rain forecast for Brazil.

Sugar prices fell Monday amid expectations for greater rain in Brazil in the coming days, adding to concerns about a global glut of the sweetener. Raw sugar for October delivery dropped 1% to 13.84 cents a pound on the ICE Futures U.S. exchange. The precipitation will begin as isolated to scattered showers during the early to middle part of this week and then increase.