Industry Odisha Bureau, Aug 25: Soon after the duty-free sugar import policy was formally announced by the Government of India (GoI) recently claimed to be a pre-emptive market intervention designed to rebuild near-term availability, temper price expectations and prevent a temporary supply squeeze from becoming a broader food-inflation problem, such a move by the GoI has reportedly had a significant impact on the global market.
As per media reports, “Such a move by the GoI has led to a tightening of the sugar market with the New York Raw Sugar Futures rallying to around 17.4 CTS/LB (cents per pound), the highest level in over a year. This increase in prices is due to the expectation that India will return as a net buyer.”
Media reports added, “The International Sugar Organization’s daily price and index data confirm a firming trend through mid-August with ISA daily prices above 17 CTS/LB and a white sugar index above USD 520/T. This rally reinforces a firmer tone that underpins already steady-to-firm wholesale prices in Europe where FCA offers hover around EUR 0.46-0.63/KG”.
International media reports on sugar imports have also stated that, “Raw sugar futures in New York surged more than 6% last week after India allowed duty-free raw sugar imports of up to 1 (one) million tons through October 31, while the most-active white sugar futures in London fell as much as 3.9% yesterday (August 24) claimed to be the biggest drop in more three months.”
