Mumbai: World no.1 sugar consumer India could be set to ramp up imports of the sweetener as a sharp drop in international prices and a stronger rupee make overseas purchases viable despite stiff duty charges, industry officials said.
Increased appetite from India, which typically churns out its own sugar to use in everything from fizzy drinks to sticky snacks, could support benchmark global prices that have been trading near their lowest in 16 months.
However, it would pressure Indian prices, potentially making it difficult for mills that process sugar cane to pay farmers rates stipulated by the government.
“At the current (international) price level, refiners can import sugar for domestic consumption and make profit,” said Rohit Pawar, chief executive of Baramati Agro, which operates sugar mills in the western state of Maharashtra.
Dealers estimate the cost of sweetener produced from raw sugar shipped in from abroad, including the 40% import duty, is around Rs32,000 ($496) per tonne, around 8% cheaper than local sugar at Rs 34,600. Read More.
Increased appetite from India, which typically churns out its own sugar to use in everything from fizzy drinks to sticky snacks, could support benchmark global prices that have been trading near their lowest in 16 months.
However, it would pressure Indian prices, potentially making it difficult for mills that process sugar cane to pay farmers rates stipulated by the government.
“At the current (international) price level, refiners can import sugar for domestic consumption and make profit,” said Rohit Pawar, chief executive of Baramati Agro, which operates sugar mills in the western state of Maharashtra.
Dealers estimate the cost of sweetener produced from raw sugar shipped in from abroad, including the 40% import duty, is around Rs32,000 ($496) per tonne, around 8% cheaper than local sugar at Rs 34,600. Read More.