Indian white sugar to compete for world marketsStaff writer ▼ | December 9, 2015
Indian sugar mills are prioritising exports of low-quality white sugar and could focus on raw sugar exports early in 2016 after the government confirmed it will pay a cane production subsidy, European traders said.
Sugar India is the second sugar producer in the world
An official notification published in the Gazette of India confirmed a cane production subsidy will be payable to farmers after mills export 80 percent of their quotas. The subsidy will be 45 Indian rupees ($0.7) per tonne.
India is the world's No2 sugar producer, behind Brazil.
European traders said that for now, Indian mills were exporting low quality whites to markets such as East Africa, the Middle East and the Indian Ocean, offered at around $375 per tonne FOB.
Traders said that any offers of Indian raw sugar next year could compete neck-and-neck with supplies from Brazil to markets such as Iran, Dubai, Bangladesh, Indonesia and Malaysia, taking into consideration tight freight differentials between the two origins.
Any increase in domestic Indian sugar prices could limit Indian raw sugar export offers, they added. ■