labels: sugar, economy - general
India''s sugar exports expected to double to 3 million tonnes in 2008news
09 July 2007

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.

 


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India''s sugar exports expected to double to 3 million tonnes in 2008