NEWS

After the decline in global sugar prices, Indian sugar mills are making slow progress in the export trade, and on the other hand, logistical obstacles are causing delays in shipments, with average logistics costs in India rising by 20–25%, especially for truck freight.

The current price of raw sugar is 19 cents per pound and the price of white sugar is around $496 per pound. According to the Indian Sugar Mills Association, most of the export contracts were signed when the global price of sugar was at 20–21 cents per pound of raw sugar, and as of the first week of December, sugar mills had exported 939,000 tonnes of sugar, with about 468,000 tonnes in transit, so given the current low global price trend, sugar mills are not eager to sell further stocks.

The managing director of the National Federation of Cooperative Sugar Factories (NFCSF) said that sentiment has improved after the initial Omicron scare. The shortage of sugar in the international markets also works to India’s advantage and there are no restrictions on the export of the commodity. It is just a matter of time before the market sentiment improves and things get back to normal.