Helena Izotova
This year Persian Gulf countries are expected to increase their import of sugar from India, not from Brazil as it was before. The major reason is transportation costs. Experts say Indian sugar costs $45-per-ton less than Brazilian one.
Since Oct 1st, 2011 the production capacity of Indian sugar refineries has increased by 14%. The Indian government has already approved the export of 2M tons of sugar this year. India’s production volume is expected to reach 26m tons this marketing year.
The price of ICE sugar futures is fluctuating around the 3-week high, which raises concerns over South Brazil’s sugarcane harvest. The global market of sugar is now really sensitive about Brazil’s sugar production. According to the Commodity Trading Department of , on Wednesday the price 26.20 c/p, which hints that the harvest is lower than expected. The experts anticipate higher sugar prices (around 30 cents per pound).
Helena Izotova
