The Government of India has authorized the export of 6 million tons of sugar during 2019-2020 under the Maximum Allowable Export Quota (MAEQ) to help cope with the country's excess sugar reserves.
As the working capital needs of sugar factories in Uttar Pradesh have increased due to increased sugar production and government restrictions imposed by the government through a monthly quota, the industry is trying to maximize the export of this product.
This is due to the fact that the end of the sugarcane crushing season will soon come, and this will close the possibilities for producing the product for export. North Indian producers hope to get an additional export quota.
After the first quarter of the sugar season, which began on October 1, sugar mills from the state of Uttar Pradesh, the country's largest sugar producing state, entered into an export contract from about 70% to 80% of the quota allocated to the state.
Whereas their colleagues in Maharashtra have reduced only about 25% of the state’s total export quota.
Many cars in India and Brazil do not drive on gas, but on alcohol. It is made from beets and reeds, so it is an environmentally friendly fuel.
According to industry sources, the sugar factories of Maharashtra signed a contract for the supply of sugar in the state.
Industry leaders say current sales are more profitable than domestic trade. Prakash Nayknavare, Managing Director of the National Federation of Cooperative Sugar factories, said: “To calculate the export rate for our white sugar, we discount $ 30 from today's (free on board) FOB rate of $ 414 per ton of refined sugar and get a rate of $ 384 / t
After deducting transportation, handling and port costs, the net sales of sugar factories will be $ 348. If we add $ 163 in subsidies, we get export sales of $ 494 per ton, which is much more than the current sale of $ 44 per ton on the domestic market. ”
- For the September-March 2018/2019 marketing year, Ukraine sold 304.6 thousand tons of sugar abroad, which is 10% less than in the previous season.
- Over the next few years, the volume of export supplies of sugar from the countries of the European Union will not exceed 2 million tons.
- It is expected that in 2019-2020. global sugar production will be less than the previous year.
