Wait...
  1. Home >
  2. Export Import News >
  3. Export Benefits >
  4. Coronavirus pandemic: Indian white sugar exports at near standstill as lockdown bites >
  5. Coronavirus pandemic: Indian white sugar exports at near standstill as lockdown bites

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Coronavirus pandemic: Indian white sugar exports at near standstill as lockdown bites.


Date: 09-04-2020
Subject: Coronavirus pandemic: Indian white sugar exports at near standstill as lockdown bites
India's white sugar shipments have been brought to a near standstill by the coronavirus lockdown, depriving the global market of key supplies after a poor harvest in Asia's top exporter Thailand.

Most of India's private ports have declared force majeure and while government ports are operating, they face labour shortages as Indians have been ordered to stay home and avoid spreading the coronavirus under a 21-day lockdown.

"Ports are functioning for clearing backlogs rather than executing new business," Rahil Shaikh, managing director of trading company MEIR Commodities India, said.

"Container traffic has virtually stopped, there's no courier services, no buses, and no public transport. Migrant labour has gone back to the countryside and customs are operating at about 5-10 percent of capacity," Shaikh said.

Even before the lockdown, Indian industry officials had cut 2019-2020 sugar export estimates to 4.5 million tonnes (MT) as a drop in prices had made overseas sales unprofitable.

This could fall further if the lockdown is extended. Most of India's 2019-2020 sugar exports contracts were for white, rather than raw, sugar.

"In the last three weeks, not a single new deal was signed due to labour shortages and lower prices," a Mumbai-based dealer at a global trading firm said. Two other dealers based in the capital confirmed the trend.

Of the 3.75MT of sugar export deals agreed to since the start of the season on Oct 1, Indian mills have shipped out 2.86MT, the All India Sugar Trade Association said.

Shaik said nearly all the remaining tonnages are stuck.

Data from his firm shows private operators like Adani Ports and Special Economic Zone have declared force majeure, while state-run ports such as Jawaharlal Nehru Port Trust (JNPT) are all operating with delays.

EXPORT INCENTIVE


On global markets, benchmark prices for refined or white sugar have mostly followed other commodities lower as the coronavirus hits growth.

But the market is signalling tightness ahead, with May white sugar on the ICE exchange trading at a premium to August, while August is at a premium to October, encouraging anyone with stock to export now not later.

The premium for May or front month whites over front month raws is not far off its highest since 2013, signalling to refiners to ramp up processing.

The May white contract will expire on April 15, leaving traders with short positions facing losses if the market moves against them and they are unable to get physical sugar.

"Its difficult to see where supply is going to come from (for the May expiry)," a London-based analyst at a global commodities trader said.

"Nobody is going to tender Thai, its worth a $60-70 premium to the futures. Algeria, one of the few countries that can tender whites against (ICE futures), has stopped sugar exports. We're really looking at central America, but the United States has just increased its (sugar import) quotas."

Commodities trader Czarnikow says output in Thailand, the world's largest sugar producer after India and Brazil, has plunged more than 40 percent this season.

"Thailand is done now (with their harvest), so all eyes are on India," Kona Haque, head of research at commodities trader ED&F Man, said.

An uptick in demand is also tightening the whites market as both countries and individual consumers stockpile staples like sugar, Haque said, adding this was not expected to last, with demand, if anything, likely to subside longer term.

There is also some hope the whites shortfall could ease somewhat as exports from Brazil pick up once its harvest gets underway, with ports there more or less operational.

Source:- moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 01-06-2020
Notification No. 08/2015-2020-DGFT
Amendment in Export Policy of Alcohol based Hand Sanitizers

Date: 01-06-2020
Public Notice No. 07/2015-2020
Amendments in the Appendix 3B, Table 2 of the Merchandise Exports from India Scheme (MEIS)

Date: 01-06-2020
Public Notice No. 09/2015-2020
Amendments in the Appendix 3B, Table 2 of the Merchandise Exports from India Scheme (MEIS)

Date: 01-06-2020
Trade Notice No. 13/2020-21-DGFT
Implementation of MoU between India and Mozambique for import of pigeon peas and other pulses grown in Mozambique during 2020-21

Date: 01-06-2020
Instruction No. 08/2020-Customs
24x7 Customs Clearance at all the Customs Stations - reg

Date: 29-05-2020
Circular No. 26/2020-Customs
Review of Circular No. 17/2020 dated 03.04.2020 namely, 'Measures to facilitate trade during the lockdown period- section 143 AA of the Customs Act, 1962'

Date: 29-05-2020
Notification No. 48/2020-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg.

Date: 28-05-2020
Notification No. 07/2015-2020
Amendment in Export Policy of Paracetamol API

Date: 28-05-2020
Instruction No. 7/2020- Customs
Special drive for disposal of applications for fixation of Brand Rate of Duty Drawback.

Date: 27-05-2020
Notification No. 9/2020-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of 'Electronic Calculators of all types excluding calculators with attached printers, commonly referred to as printing calculators; calculators with ability to plot charts and graphs, commonly referred to as graphing calculators; programmable calculators',originating in, or exported from, People's Republic of China for a period of five years, in pursuance of final findings of sunset review investigations issued by DGTR and in supersession of the notification No. 24/2015- Customs (ADD), dated the 29th May, 2015.



Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001