Mumbai:
Indian exports of raw sugar is likely to more than double to over 3 million tonnes
in 2007-08 against an estimated 1.5 million tones exported this year, Akhilesh
Prasad Singh, minister of state for agriculture, consumer affairs and public distribution,
told reporters at an industry conference. India''s
exports of raw sugar so far in 2006-07 amounted to 1.1 million tonnes and were
expected to reach 1.5 million tonnes for the year to September 30. "I think
it will be much bigger (next year)," Singh said on the sidelines of the World
Beet and Cane Growers Conference, adding that exports in 2007-08 could be 3 million
tonnes or more. India''s
sugar production in the year to September 30 would amount to at least 27 million
tonnes, and probably more, while next year''s production could be greater than
30 million tonnes, Singh said. Official figures were for production of 27 million
tonnes this year but farmers'' estimates were for more than this, he said. With
the annual consumption at 19-20 million tones, India was headed for a surplus
of 8-9 million tonnes this year, Singh said. Singh acknowledged other sugar exporting
countries were not pleased about the extent of Indian exports, but said there
was no alternative given the surplus output. He
also told the conference that India, which so far produced only cane sugar, was
experimenting with beet sugar. India was also developing ethanol production from
sugar, possibly with some capacity to export, to take advantage of the growth
in demand for environmentally friendly biofuels. Recently,
India sold 200,000 tonnes of raw sugar to Dubai while traders said it could have
another one million tonnes to export. Singh''s statement suggested sales have progressed
since the Dubai sale, despite comments last month from the head of India''s sugar
export corporation ISEC that India would not sell at present low prices of less
than 10 US cents a pound. Industry
sources have recently said India''s production this year had already passed 28
million tonnes. India , the world''s second-largest sugar producer after Brazil
, churned out 19.3 million tonnes in the year to September 2006. Sugar
prices are already under pressure and India ''s entry could badly affect the already
low world prices. New York raw sugar futures for October are trading around 9.5
US cents a pound, having dived from 25-year peaks of over 19 US cents in 2006.
|